Tesla to Release Earnings Results for First Quarter of 2018

After the market closes on Wednesday, American electric automobile maker Tesla Inc is scheduled to release its first quarter financial report for the year 2018 which will be followed by a conference call shortly. Shares of the company which recovered recently is set to reverse its previous gains should it fail to meet most analyst forecasts or show a weak outlook on its Model 3 production,

Recent Production and Earnings Report

Despite a weak Model 3 production and delivery last year, Tesla lifted investor confidence slightly over the past couple of months when it stated that it is working on increasing its efforts and boosting the Model 3 production. The mass-market vehicle production which has continuously failed to meet Tesla’s own targets has dragged the shares of the company below the $300 level recently.

However, various reports of the company’s efforts paying of and finally showing a reasonable recovery on the Model 3 production have led to Tesla’s stock to trade back up again to as much as $300.08 last month when news of the company’s Model 3 production currently ranging from 3,000 to 4,000 vehicles as of early April.

The stock also did not lose ground when news of the company facing an investigation from the California Occupational Safety Administration on factory safety issues on its Fremont plant surfaced. Tesla stated that the claims were part of an attack from an extremist organization supported by some of its union workers.

Tesla then announced that it is planning to upgrade its production through hiring around 400 more employees every week to work on its Gigafactory in Nevada as well as its factory in Fremont, California.

During their previous earnings call, Tesla posted a revenue of $3.29 billion and loss of $3.04 per share slightly in line with consensus analyst forecasts. During their fourth quarter earnings release, Tesla assured investors that it is on track with its production for the Model 3 vehicle and that its massive cash burn rate is slowing down.

Tesla has previously confirmed its deliveries for the first quarter and announced around 29,980 vehicles delivered which is an improvement for the company led by its efforts in boosting the production of the Model 3. For the first quarter of the year, 11,730 Model S vehicles, 10,070 Model X vehicles, and 8,180 vehicles were delivered.

Q1 2018 Forecasts

Tesla’s revenue is forecasted to come at around $3.142 billion for the first quarter. This is slightly lower than Tesla’ revenue from the first quarter which came at $3.288 billion. However, the forecasted numbers reflects a growth from their reported revenue of $2.696 billion during the same quarter last year. Tesla is also set to post losses of around $3.19 per share to as much as $3.26 per share.

Tesla shares which are last seen down by around 0.26% is trading at around $294 per share. While the numbers for their deliveries has been revealed to be mostly positive, a weak forecast from the company regarding their production and deliveries may push Tesla shares further down on Wednesday regardless of financial numbers.

See also: Tesla to Use SpaceX for Large Data Management

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