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Last Update: 25-Sep-12 09:11 ET
Tesla Motors shares plunge 8% following downside guidance
Tesla Motors (TSLA $28.00 -2.66) issued downside guidance for the third quarter with revenues of $44-46 million versus the $90.85 million consensus. The company issued downside guidance for fiscal year 2012 with revenues of $400-440 million versus the $546.68 million consensus. The company continues to ramp the production of its Model S.
"We now anticipate that we will deliver between 200 and 225 Model S vehicles to customers in the third quarter and between 2,500 and 3,000 Model S vehicles in the fourth quarter. As such, we believe we will be ~four to five weeks behind our previously announced Model S delivery goals as of the end of 2012. As of Sept 23, 2012, we have delivered 132 Model S vehicles to customers which includes 42 vehicles delivered during the week ended Sept 23, 2012. As of Sept 23, 2012, we have produced a total of 255 Model S vehicles, including 77 Model S vehicles produced during the week ended September 23, 2012. We anticipate producing over 300 vehicles in the third quarter. We plan to continue our ramp in order to reach our objective of weekly production of 400 Model S vehicles before the end of 2012 which should enable us to produce more than 20,000 Model S vehicles in 2013. We anticipate, however, that manufacturing and supplier issues will continue to arise and need to be addressed in a timely manner. In the third quarter of 2012, we anticipate that our gross margin will be negatively affected primarily by the limited number of Model S vehicles we intend to deliver, the consequent allocation of all manufacturing and labor overhead costs across a smaller number of vehicles, manufacturing inefficiencies, higher costs for initial parts, and the delay of development services revenue from Daimler, resulting in a negative gross margin in the range of 15% to 18%. In Q4 we expect gross margin to improve substantially and turn positive mainly due to higher Model S volume, as well as cost efficiencies and planned cost reductions. For 2013, co reaffirms plan to exceed our objective of 20,000 Model S deliveries in 2013 and expect to achieve a gross margin of 25% in 2013 once we achieve manufacturing efficiencies and planned cost reductions associated with higher volume production and improvements in the margins of our powertrain sales. As of September 23, 2012, our Model S reservations, after subtracting deliveries, were ~13,000, up from ~11,500 at June 30, 2012. The third quarter has been the strongest quarter in our history for new Model S reservations, totaling more than 2,600 to date.
"We now anticipate that we will deliver between 200 and 225 Model S vehicles to customers in the third quarter and between 2,500 and 3,000 Model S vehicles in the fourth quarter. As such, we believe we will be ~four to five weeks behind our previously announced Model S delivery goals as of the end of 2012. As of Sept 23, 2012, we have delivered 132 Model S vehicles to customers which includes 42 vehicles delivered during the week ended Sept 23, 2012. As of Sept 23, 2012, we have produced a total of 255 Model S vehicles, including 77 Model S vehicles produced during the week ended September 23, 2012. We anticipate producing over 300 vehicles in the third quarter. We plan to continue our ramp in order to reach our objective of weekly production of 400 Model S vehicles before the end of 2012 which should enable us to produce more than 20,000 Model S vehicles in 2013. We anticipate, however, that manufacturing and supplier issues will continue to arise and need to be addressed in a timely manner. In the third quarter of 2012, we anticipate that our gross margin will be negatively affected primarily by the limited number of Model S vehicles we intend to deliver, the consequent allocation of all manufacturing and labor overhead costs across a smaller number of vehicles, manufacturing inefficiencies, higher costs for initial parts, and the delay of development services revenue from Daimler, resulting in a negative gross margin in the range of 15% to 18%. In Q4 we expect gross margin to improve substantially and turn positive mainly due to higher Model S volume, as well as cost efficiencies and planned cost reductions. For 2013, co reaffirms plan to exceed our objective of 20,000 Model S deliveries in 2013 and expect to achieve a gross margin of 25% in 2013 once we achieve manufacturing efficiencies and planned cost reductions associated with higher volume production and improvements in the margins of our powertrain sales. As of September 23, 2012, our Model S reservations, after subtracting deliveries, were ~13,000, up from ~11,500 at June 30, 2012. The third quarter has been the strongest quarter in our history for new Model S reservations, totaling more than 2,600 to date.
