Published: Thu, August 11, 2016
Economy | By Melissa Porter

Electric Avenue: Elon Musk Confirms The Tesla Model Y (Compact SUV)

Electric Avenue: Elon Musk Confirms The Tesla Model Y (Compact SUV)

Automotive revenue was $1.2 billion in a GAAP basis and $1.5 billion on a non-GAAP basis.

A senior research analyst Ben Kallo, at Robert W. Baird, said that he thinks this is actually what he called the de-risking the quarter, they got the quarter out of the way so now they got a couple months where Elon Musk can start telling us more about the Model 3. Tesla said the average price of its new Model X SUV is more than 15 percent higher than the Model S sedan.

"They're such a future company that people take these earnings reports with a grain of salt", said Jessica Caldwell, director of industry analysis for Edmunds. "Later this year, we plan to begin construction of new Model 3 body and general assembly centers". It more than doubled the losses on earnings per share for the second quarter of 2016.

The automaker badly missed Wall Street forecasts with a $1.06 loss per share on $1.56 billion in sales.

Baird Equity Research still has faith in Tesla's technology and innovation. "We continue to believe demand for Tesla vehicles is strong, and believe anything Tesla can do to address demand would benefit the stock", analyst Ben Kallo wrote.

Tesla delivered about 14,400 vehicles during the quarter - a figure it had already reported a few days after the quarter's end.

Despite lower-than-expected production numbers in the first half of the year, Tesla remains confident it can hit delivery goals by the end of 2016.

The manufacturer said it was still on track to meet its delivery projections of 50,000 for this year on its Model S ans Model X cars. The company also disclosed that its value of secured assets limits the ability to borrow under the asset-based revolving credit agreement with some banks as Tesla is looking to buy solar panel installer SolarCity Corp for $2.6 billion in shares. The deal still needs approval from the Security and Exchange Commission and shareholders.

The company also said in its filing that "from time to time" it has received requests for information from regulators and governmental authorities "such as the National Highway Traffic Safety Administration (NHTSA), the National Transportation Safety Board and the Securities and Exchange Commission". Those sites could expand to offer SolarCity products, if the proposed merger is approved.

Weeks after Tesla reported its first known fatality of a driver using autopilot, Musk said the company's "top two priorities" are the Model 3, "followed by full autonomy".

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