Tesla Motors Inc (TSLA) Earnings Preview; Expected To Exceed Guidance

Tesla Motors Inc (NASDAQ:TSLA) shares have rocketed following its entry into China and positive review from the Consumer Reports. This week the stock is trading somewhere around $196.62 per share compared to the stock price of $37 previous year. The electronic vehicle manufacturer is set to post its fourth quarter earnings on February 19, which means that there is more room for the stock to grow.

Model S deliveries, a must watch item

In the upcoming quarterly results, the centre of attraction for analysts and investors would be the number of Model S delivered. CEO Elon Musk has a legacy of under-promising and over delivering, and investors are expecting something of this sort in the upcoming week, as well.

In the previous month, Tesla Motors Inc (NASDAQ:TSLA) anticipated the Model S shipment to be more than company’s earlier guidance by as much as 20%. Also, there was a slight indication from the company that sales, in the upcoming quarter, would be highest.

In a recent press release, Tesla lauded the “excellent effort” from Panasonic because of which the company was able to produce more cars.

Gross margin might exceed the target

According to what company forecasts, the total deliveries of Model S in the quarter will total somewhere around 6,900, substantially high than the previous forecasts of lesser than 6,000 vehicles. Additionally, it is anticipating hitting 25% non-GAAP vehicle gross margin excluding the sales of Zero-emission-vehicle credits, in the quarter. Prior to this quarter, the gross margin surged to 21%, an increase from 14%.

Investors would be more satisfied if Tesla Motors Inc (NASDAQ:TSLA) succeeds in selling more Model S cars in the current quarter. More number of Tesla Model S would take the gross margin above the 25% target. Also, Model S gross margin should benefit from improvements in manufacturing costs.

Owners of Model S are more than satisfied with the car as it delivers exactly what Tesla Motors Inc (NASDAQ:TSLA) promised. Model S drives efficiently in the high speed, close quarter traffic found on urban and suburban interstates. Superchargers are as fast as Tesla promised them to. At the full 120-kW charging rate, Superchargers add 1 mile of range every 10 seconds. There are some Supercharger stations that have both 90- and 120-kW charging stalls. Under normal conditions, Tesla superchargers can charge in just 30 minutes.