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Last Update: 21-Feb-13 07:49 ET
Tesla shares fall 8% following miss on earnings
Tesla Motors (TSLA $35.50 -3.26) reported a fourth quarter loss of $0.65 per share, excluding non-recurring items, $0.13 worse than the Capital IQ consensus of ($0.52), while revenues rose 677.4% year/year to $306.3 million versus the $299.65 million consensus. The company delivered 2.4K Models vs. 2.5-3.0K guidance. "The company added more than 6,000 new reservations in Q4, up from almost 2,900 in Q3. After deliveries and cancellations, our net reservations at year end, were over 15,000, up from about 13,000 at the end of Q3. New reservations continue at a steady, although slower pace in Q1 2013, as compared to December, due in part to the pull ahead of reservations into Q4 by customers seeking to avoid the price increase. Q1 cancellations are likely to remain elevated as the remaining older reservation holders are invited to configure their vehicles within a set timeframe or pay the higher price just like new reservation holders." The company issued upside guidance for the first quarter with adjusted. net earning slightly positive vs. ($0.22) Capital IQ Consensus Estimate, with 4.5K deliveries. "As a result of these actions and the favorable impact of regulatory credits, Q1 gross margin is projected to improve to the mid-teens percentage range. We expect our gross margin to continue to rise into the second half of the year to our target of 25%, despite a much lower contribution from regulatory credits... We also expect to be near breakeven on cash flow from operations. These targets would be achieved through a combination of improved gross margin and lower R&D expenses." The company reaffirms FY13 deliveries of 20K.
