Post Earnings Coverage as Tesla Reports Blockbuster Quarter with Revenue Rocketing 145% and Net Orders Soaring 68%

Upcoming AWS Coverage on Fiat Chrysler Automobiles Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 4, 2016 / Active Wall St. announces its post-earnings coverage on Tesla Motors, Inc. (NASDAQ: TSLA). The company reported its financial results for the third quarter fiscal 2016 on October 26, 2016. The electric car maker posted its second profitable quarter ever and topped market expectations by a wide margin. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Tesla Motors’ competitors within the Auto Manufacturers – Major space, Fiat Chrysler Automobiles N.V. (NYSE: FCAU), reported record third quarter results on October 25th, 2016. AWS will be initiating a research report on Fiat Chrysler Automobiles in the coming days.

Today, AWS is promoting its earnings coverage on TSLA; touching on stock like FCAU. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=TSLA

http://www.activewallst.com/registration-3/?symbol=FCAU

Earnings Reviewed

For the three months ended on September 30th, 2016, Tesla reported net income of $21.9 million, or $0.14 per diluted share, after reporting a loss of $293 million, or $2.09 per share, in Q3 2015. The Palo Alto, California-based company’s earnings, adjusted for stock option expense, came in at $0.71 per share, smashing analysts’ forecasts for a loss of $0.54 per share. Total Q3 GAAP revenue was $2.30 billion, up 145% from Q3 2015. Revenue results also beat Street’s forecasts of $1.94 billion. The company’s total Q3 gross margin was 27.7% compared to 21.6% in Q2 2016.

Total automotive revenue was $2.15 billion on a GAAP basis, up 152% from Q3 2015. The company’s final Q3 2016 delivery count was 24,821, over 300 more than the estimated delivery count the company shared on October 2nd, 2016. Deliveries in Q3 2016 increased 114% from Q3 2015, comprising of 16,047 Model S and 8,774 Model X vehicles. Additionally, 5,065 vehicles were in transit to customers at the end of the quarter.

Operating Statistics

Tesla reported that during Q3 2016, combined net orders for new Model S and Model X vehicles grew 68% compared to the same period last year. During the quarter, the company opened 17 new stores and service centers to boost its customer support network to 250 locations globally. Tesla achieved record production levels in Q3 2016 with 25,185 vehicles for an increase of 92% from Q3 2016.

Tesla stated that in the U.S., its Model S deliveries grew nearly 60% on a y-o-y basis, increasing its lead status with a 32% share of the top 12 selling large luxury sedans. The company noted that despite still ramping production, Model X is also gaining market share, already growing to 6% of the U.S. large luxury SUV market in Q3, or #8 in the large luxury SUV category.

Tesla noted that it has expanded its vehicle charging network. At the end of Q3 2016, the company had 715 Supercharger locations globally, with 4,461 individual Superchargers. 97% of the populations in the continental U.S. and 86% of western Europeans are now within 150 miles of a Supercharger.

Tesla announced that it is installing a 20 MW/80 MWh Powerpack system at the Southern California Edison Mira Loma substation to help reduce rolling blackouts. Upon completion, this system will be the largest lithium ion battery storage project in the world and will hold enough energy to power more than 2,500 households for a day or charge 1,000 Tesla vehicles.

For Q3 2016, Tesla’s Q3 GAAP total automotive gross margin was 29.4%, while non-GAAP Automotive’s gross margin was 25.0%. Non-GAAP automotive’s gross margin, excluding ZEV credits, increased 140 basis points sequentially because of improved manufacturing efficiency and higher production volume.

Financing Activity

Tesla’s cash flow from operations during Q3 2016 was $424 million due to increased sales. Free cash flow was $176 million as the company invested $248 million in capital expenditures to increase production capacity, accelerate Gigafactory construction, and expand customer support infrastructure. Capital expenditures remain on plan to help the company reach its goal of producing 500,000 vehicles in 2018.

Furthermore, Tesla generated $173 million of cash inflows from vehicle sales to its bank leasing partners. These figures are not included in cash flow from operations. Tesla stated that with strong cash flows this quarter, it was able to reduce the balances on its borrowing facilities by $178 million and settle $422 million of conversions on the company’s 2018 convertible notes. Post the debt repayment, cash and cash equivalents were $3.1 billion at the end of Q3 2016 compared to $3.2 billion at the end of Q2 2016.

Guidance

Tesla reaffirmed its guidance of 50,000 new vehicle deliveries for H2 2016, with a Q4 2016 plan of just over 25,000 deliveries. The company has projected a 2% to 3% improvement in automotive’s gross margin on a GAAP and non-GAAP basis by the end of 2016.

Stock Performance

At the close of trading session on November 03, 2016, Tesla Motors’ stock price slightly fell 0.32% to end the day at $187.42. A total volume of 2.64 million shares were exchanged during the session. The stock currently has a market cap of $28.09 billion.

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