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NEW YORK ( TheStreet) –– Tesla
Tesla earned an adjusted 11 cents per share on revenues of $858 million, up 55% year-over-year, and produced 8,763 Model S units this quarter, delivering 7,579. Last quarter, the electric car manufacturer earned 12 cents per share on revenues of $713 million and produced 7,535 model S units, of which 6,457 were delivered. Gross margins were 26.8%, ahead of the 25.4% reported last quarter. Net income was $16 million. The company ended the quarter with $2.7 billion in cash and marketable securities.
Analysts polled by Thomson Reuters expected Tesla to earn 4 cents per share on revenues of $810.6 million.
"We have had an active first half of 2014, and the rest of the year is expected to be even busier," said CEO Elon Musk and CFO Deepak Ahuja in the letter to shareholders. "The development of our large-scale battery manufacturing facility, known as the Tesla Gigafactory, is proceeding well. We have formalized our agreement with Panasonic for cell manufacturing at the Gigafactory and remain on track with the site selection process."
Last quarter, Tesla predicted that it would deliver 7,500 Model S units and produce between 8,500 and 9,000 this quarter. The company said then that it looked to deliver 35,000 units for the full year; it is now on track to surpass that benchmark. For the third quarter, Tesla expects to produce 9,000 cars.
The report also said that a new Model S and Model X assembly line will begin operations next week. Tesla noted that it was still on track to begin producing the Model X in the spring of 2015. "Provided that we execute well and there are no serious macroeconomic shocks, Tesla's annualized delivery rate should exceed 100,000 units by the end of next year," the company said.
Earlier that day, Tesla announced that it had finalized an agreement with Panasonic to collaborate on a large-scale battery manufacturing facility, known as the Tesla Gigafactory. The report said that Tesla had broken ground on a potential site in Reno, NV., and was looking into other potential sites in Arizona, California, New Mexico, and Texas, as per the company's policy of breaking ground on multiple sites.
In its first quarterly earnings since going public, the company, which makes wearable cameras for extreme sports enthusiasts, reported earnings of 8 cents per share in its second quarter, up from a 3 cent loss a year earlier. Revenues rose 38% year-over-year to $244.6 million, a 3.8% increase from last quarter. Analysts polled by Thomson Reuters predicted earnings of 6 cents per share on revenues of $237.7 million.