Analysis of Tesla Recent Report Earnings With Main Key Factors

Tesla is going to present his 2nd Quarter earnings report and it will grab high approachability from the media and investors.

Wall Street is always in-front to get any updates on Tesla model 3 manufacturing, investment needs, and close profit term.

Also, the media, investor, and the general public want to hear from Elon Musk (The founder and CEO of Tesla) who previously refused in the quarter 1 earnings announcement to answer the questions.

According to the FactSet Research System Inc analyst averagely analysis is showing that the expected profitability of the Tesla will round-about 3.99$ billion and the major portion of sales revenue will come from the sales of the model 3. The negative FCF (Free cash flow) is 896$ million.

Before the live presentation of the Tesla quarter 2 report, as an investor you must consider the following factors :

1- Cash Flows and Profit Goals

The 1st quarter report and the Elon Musk tweet suggested that the company will announce a positive cash-flow and earning in 3rd and 4th quarters consecutively. The company hopefully will not decide to raise additional capital by offering new shares to the general public.

In the past the company has reduced the number of jobs, this increased the company savings by minimizing the salary expenditures so the question arises can a company increase its profitability by the new changes?

The pool of analysts also estimated that the Tesla will diminish the losses but not fully dissolve. Also, Tesla is taking back some part of the money from their supplier, the money was given by the company in the past and hopefully will cause positive impacts on financial position.

2- Manufacturing of Model 3 Cars And Reservation

The Tesla has planned to meet the goals by manufacturing of 5000 cars of model 3 in one week after the finish of 2nd quarter or at the end. The company also has developed a future forecast according to which it wants to achieve the goal of 6000 cars manufacturing per week at the end of August.

The Company is carefully checking all the comments passed about Model 3 vehicles manufacturing. Tesla has announced the reservation order process, this scheme will facilitate the reservation holder for primacy in placing the order.

The Tesla CEO Elon Musk already stated that the manufacturing of Standard Batter that will cost 35000 dollars at the end of the year 2019. It is also estimation in the minds of investors and people the Tesla will provide some updates about the high standard and high-cost battery manufacturing. Anyone who wants to place an order to Tesla can cost him with 49000 dollars or high.

3- Tesla Energy Sector

The Tesla energy products include Tesla Batteries, Tesla Solars, and Energy storing systems. The Tesla solar system sales decline because the company starts looking for the up-front cash as an alternative to financing policy. Tesla wants to makes it business profitable by the WIP (work in process).

The estimated profit in the Tesla energy sector is 418 million dollars (46% annually) as estimated by the analysts for the 2nd quarter. However the analysts predictable also describe the gross profit in the range of 55 million dollars to 121 million dollars.

4- Sales Movements In Model S And X

The Tesla has been supplied approximately 10.930 vehicles of S model below than the desired goals. The company delivers 11,370 vehicles of X Model.

The company wants to supply 1 lac models of X and S Vehicles in the year 2018.

The major portion of the Tesla revenue is coming from the sale of these vehicles. However the main obstacle to the sale of Tesla is imposing tariffs, the prices of the cars have increased and the main cause for the decrease in its sale.

5- Gross Margin Expectations

The company is expecting gross margin out-put in the 2nd quarter, this is still uncertain. The first quarter report is showing a negative GM and the 2nd quarter will be the no profit and no loss point for the gross margin. Similarly, the 3rd and 4th quarter will show a hugely positive trend in the GM. News Wire & Equity Research: +31 084-0032-842

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