Research Desk Line-up: SORL Auto Parts Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 18, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Tesla, Inc. (NASDAQ: TSLA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TSLA, following the Company's reporting of its second quarter fiscal 2017 operating results on August 01, 2017. The electric vehicle maker outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Auto Manufacturers - Major industry. Pro-TD has currently selected SORL Auto Parts, Inc. (NASDAQ: SORL) for due-diligence and potential coverage as the Company announced on August 14, 2017, its financial results for Q2 2017 and the first six months which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on SORL Auto Parts when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TSLA; also brushing on SORL. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=TSLA
http://protraderdaily.com/optin/?symbol=SORL
Earnings Reviewed
For the three months ended June 30, 2017, Tesla's revenue soared 119.7% to $2.79 billion compared to revenue of $1.27 billion in Q2 2016. The Company's revenue numbers surpassed analysts' estimates of $2.52 billion.
For Q2 2017, Tesla's Automotive revenue grew 93% to $2.29 billion compared to revenue of $1.18 billion in Q2 2016; largely due to 53% growth in total vehicle deliveries and a smaller percentage of vehicles sold with residual value risk that were subject to lease accounting.
Tesla's Q2 2017 GAAP automotive gross margin was 27.9% while non-GAAP automotive gross margin was 25.0%; representing a sequential decline of about 285 basis points primarily due to the absence of the one-time benefit of Autopilot software recognized in Q1 FY17 and fluctuations in product mix. The Company's reported quarter operating expenses declined sequentially primarily due to the absence of $67 million of non-recurring charges related to acquisitions that were recognized in Q1 2017.
During Q2 2017, Tesla's GAAP from operations improved to $240.92 million compared to loss from operations of $238.04 million in Q1 2017, due to lower operating expenses despite increased costs related to the launch of Model 3.
For Q2 2017, Tesla reported a net loss of $336.40 million, or $2.04 per share, compared to a loss of $293.19 million, or $2.09 a share, in Q2 2016. Adjusted for one-time items, Tesla lost $1.33 per share in the reported quarter compared to $1.61 per share in the prior year's same period. Wall Street's estimations were for a loss of $1.88 per share.
Production Details
During Q2 2017, Tesla produced 25,708 vehicles, 40% more cars than the Company built in Q2 2016, despite a production shortfall of 100 kWh battery packs through early June 2017. During the reported quarter, the Company added more Model X cars to its test drive and display fleet. Additionally, Tesla increased its service loaner fleet with fully loaded cars to provide better customer experience. This additional visibility was likely a factor in helping Model X net orders in Q2 2017, which grew by over 20% both sequentially and as compared to Q2 2016.
Tesla delivered 22,026 of Model S and Model X vehicles in Q2 2017 for a total of 47,077 in H1 2017. Model S and Model X combined deliveries in the reported quarter grew almost 53% globally versus the prior year, even though the luxury vehicle market was essentially flat. The combined Model S and Model X market share grew in the US premium luxury vehicle market during Q2 2017.
Cash Matters
During Q2 2017, Tesla's cash consumed in operating activities totaled $200.17 million compared to cash consumption of $69.81 million in Q1 2017, primarily due to higher inventory and receivables. Including the cash received for vehicle sales to the Company's leasing partners, Tesla consumed $51 million of cash in the reported quarter.
For Q2 2017, Tesla's capital expenditures were $959 million, as the Company invested in Model 3 capacity in Fremont; in Gigafactory; and in the expansion of its customer support infrastructure. Tesla's total capital expenditures of $1.5 billion in H1 2017 were lower than expected primarily due to the timing of milestone-based cash payments.
Tesla stated that cash balance of slightly over $3.0 billion at the end of Q2 2017, plus expected cash generated from operations in H2 2017, were expected to provide sufficient liquidity to fund the Company's capital expenditure projections and provide flexibility through the Model 3 ramp.
During Q2 2017, Tesla increased the capacity of its revolving asset-backed credit line by $625 million to $1.83 billion, with the ability to expand capacity by another $175 million to $2 billion.
Outlook
Tesla is forecasting Model S and Model X deliveries to increase in H2 2017 compared to the first half of the year. During Q3 2017, the combined non-GAAP gross margin for Model S and Model X is expected to decline slightly on a q-o-q basis, driven primarily by mix shift. Tesla is forecasting Model 3 non-GAAP gross margin to be positive in Q4 2017, and should improve rapidly in 2018 to the Company's target of 25%.
For H2 2017, Tesla is estimating strong improvement in operating leverage as revenue is forecasted to significantly increase in the second half of the year compared to H1 2017 while operating expenses are expected to remain essentially flat.
Stock Performance
On Thursday, August 17, 2017, the stock closed the trading session at $351.92, dropping 3.03% from its previous closing price of $362.91. A total volume of 5.01 million shares have exchanged hands. Tesla's stock price soared 12.41% in the last three months, 30.85% in the past six months, and 57.64% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 64.69%. At Thursday's closing price, the stock's net capitalization stands at $58.33 billion.
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