Tesla Q1 Highlights: Car Manufacturer Beats the Street, but Stock Dips
Tesla reported first-quarter results just ahead of Wall Street expectations on Tuesday, as global orders ticked up for the company’s luxury electric sedan.
Still, shares dropped nearly six percent in after-hours trading, falling below $190 following an already down day for the stock.
The Palo Alto, Calif., company said net income reached $17 million, or 12 cents per share, excluding one-time items, according to a letter to shareholders signed by Chief Executive Elon Musk and Chief Financial Officer Deepak Ahuja. Revenue totaled $713 million.
Analysts were looking for earnings per share of 10 cents on revenue of $699 million, according to the average estimates provided by the Thomson Financial Network.
Tesla delivered 6,457 of its Model S sedans and produced 7,535 during the quarter. The company expected to deliver 6,400 units and produce 7,400, based on earlier guidance provided to analysts.
Looking out ahead, the company said it expects to deliver 7,500 Model S sedans in the second quarter, which fell below loftier analyst estimates and could account for the stock decline. That puts Tesla on track to deliver 35,000 vehicles this year, in line with earlier guidance.
Tesla expects to invest between $650 million and $850 million this year. The company plans to increase production capacity; build out more stores, service centers and Supercharger stations; develop the forthcoming Model X SUV and begin construction of the massive Gigafactory battery plant later this year.
The company said it expects to ramp up production of the Model X in spring 2015.
Tesla’s stock has been beaten up in recent months, amid the broader selloff of tech stocks. Shares are still up from the start of the year, but down more than 20 percent from the end of February.
The company will hold a webcast to discuss results further later this afternoon.