When the market closes today, Tesla will publish a revenue report, but investors will be more interested in Model X production and the future targets.
Not always the numbers are primordial for the investors. Tesla Motors will announce later today, when the market closes, its third-quarter financial results. However, the motoring specialist and the investors will be more interested in the production pace of the Model X SUV and if it is at a proper capacity for achieving the 50,000 cars target for this year. Tesla’s revenue is forecasted to 1,24 billion dollars, which would mean a 33 percent increase from 2014. According to a preliminary count, the company has delivered 33,157 cars so far in the first three quarters and will be difficult for them to reach 50,000 vehicles. Tesla didn’t say much so far about Model X SUV deliveries. Also, The Model S lost its recommendation last month from Consumer Reports after owners were not entirely happy with the overall quality.
“Sentiment is 2015 deliveries will come in near the low end of guidance (and guidance could potentially be lowered) with low Model X volumes”, said analyst Ben Kallo of Robert W. Baird & Co. “We need to see a few thousand Model X vehicles produced before we gain comfort in Tesla’s production ability”. Elon Musk, chairman and chief executive officer of Tesla Motors, has been straightforward about the model’s challenging design and feature gimmicks as “falcon-wing” doors, independently operable second-row seats and vast panoramic windshield. There are also other directions that Tesla in heading and the path is not very clear, including the Powerwall home battery, the low sales in China or the lower-priced Model 3 expected for late 2017.
By Sorin Petcu