Tesla Stock Crosses $150 Per Share on Quarterly Earnings Announcement

By · August 07, 2013

Tesla Model S

Tesla Motors announced strong quarterly earnings Wednesday and projected continued growth surpassing 40,000 deliveries per year in 2014. Tesla’s total non-adjusted revenue for the second quarter was up 70 percent to $551 million, with net income of $26 million or $0.20 per share. In after-hours trading, investors reversed a 7 percent drop in Tesla’s share price during the day and rallied the stock to record highs above $150 per share.

By GAAP (or “Generally Accepted Accounting Practices”) Tesla technically carried a net loss of $31 million for Q2, but one-time payments and costs associated with the cancellation of the 40 kWh edition of the Model S weighed down otherwise strong numbers. The company says it expects GAAP income in Q3 to be closer in line with revenue from sales.

So far, Tesla is on pace to deliver 21,000 vehicles in 2013 and says that sales will continue to be constrained only by supply until sometime next year. “We’re striving to become demand limited as opposed to supply limited,” said CEO Elon Musk during a conference call with investors.

The biggest area of expansion during the remainder of 2013 will be in foreign markets throughout Europe and Asia. Tesla expects demand exceeding 20,000 vehicles per year in North America, 5,000 per year in Europe and 5,000 per year in Asia, but Musk said his company would hold off on aggressively trying to court demand beyond those targets. “We’re not trying to push [sales] higher than that because it’s kind of pointless to push production when you can’t meet it.”

Musk blamed production limitations on the part of suppliers for bottlenecking growth but said that Tesla will continue to work with its current partners and add new ones to keep pace with demand.

Though investors peppered the conference with questions about future releases like the Model X and the highly anticipated $35,000 sedan, Musk said that capital expenditures on the X wouldn’t begin to pick up until early next year, when Tesla will begin to buy new tooling equipment as it works towards production.

At the moment, Tesla says that its biggest research and development project remains the Model S, which will require reconfiguring for most foreign markets. Musk said that he spends “about 5 percent per week” of his time working to move the more affordable $35,000 sedan to market, but that the Model X and Model S will continue to be the focal points for R&D for some time to come.

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