Tesla Motors roundup: Hong Kong deliveries, Baird confident on 2H


Tesla Motors (TSLA -0.7%) has delivered the right-hand Model S vehicles to customers in Hong Kong, according to a company spokesperson. The first right-hand drive versions of the Model S were delivered in the U.K. last month.

The company also announced the opening of two Supercharger stations in Hong Kong.

Baird is cautious about the EV automaker's upcoming Q3 earnings release, but thinks 2H sets up well for Tesla with major catalysts in place.

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Comments (20)
  • AlphaCoils
    , contributor
    Comments (370) | Send Message
     
    Isn't that Q2 earnings release? Typo?
    28 Jul 2014, 11:12 AM Reply Like
  • Technology Equity Strategies
    , contributor
    Comments (3126) | Send Message
     
    Alpha,

     

    No. Its 3rd quarter. The company has plainly told all their favorite analysts the 3rd quarter guidance is going to be crappy. So they all are punching out cautious words on Q-3, all on cue.

     

    There should be some kind of rules on how to leak guidance to analysts. But I guess they don't apply to Tesla anyway.
    28 Jul 2014, 11:17 AM Reply Like
  • AlphaCoils
    , contributor
    Comments (370) | Send Message
     
    OK, thanks for the clarification.
    28 Jul 2014, 11:28 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
     
    Ignore Tippydog. He loves to make things up. Yes, the upcoming earnings release is for Q2, not Q3. Yes, it's going to be crappy (not the sales, which should come right on the money, but the earnings), but it doesn't take leaks from Tesla for me to say that with confidence. Tesla has stated publicly that their strategy is to subsidize the Model 3 with the cash flow it gets from selling the Model S and Model X. Of course, there aren't any Model X sales yet, so right now everything depends on the Model S. The company should also have started spending this last quarter on the gigafactory and it also had to spend to retool the production line which is currently down for retooling. In short, don't expect gobs of cash to end up at the bottom line for many quarters to come (like 80). It all gets spent just as fast as they can earn it. Many analysts keep expecting them to start growing profits, but that's just not in the plan until the company has reached the size of the major car makers.
    28 Jul 2014, 11:36 AM Reply Like
  • I need a bailout
    , contributor
    Comments (1758) | Send Message
     
    @David

     

    "Tesla has stated publicly that their strategy is to subsidize the Model 3 with the cash flow it gets from selling the Model S and Model X."

     

    how interesting a statement

     

    Elon Musk said the same thing about the Roadster in his secret Master Plan

     

    "...all free cash flow is plowed back into R&D to drive down the costs and bring the follow on products to market as fast as possible. When someone buys the Tesla Roadster sports car, they are actually helping pay for development of the low cost family car."

     

    How funny!

     

    http://bit.ly/16K745J

     

    There is a small problem. There is no free cash flow in the Roadster years or the Model S years.

     

    Just accumulated losses of $1.19B as of Q1 2014.

     

    And every year TSLA is free cash flow negative and will be in 2014 ... according to Elon Musk.

     

    http://bit.ly/1jnXrVm
    28 Jul 2014, 01:37 PM Reply Like
  • Tech Talker
    , contributor
    Comments (886) | Send Message
     
    There is no free cash flow because Tesla is investing in their next generation of vehicles. For example, Tesla knows that they will have a certain amount of free cash flow in a quarter, so they spend that amount of money to ensure that they keep investing in the next generation. Musk's instructions to Tesla China is to spend as much money as possible without wasting it.
    29 Jul 2014, 12:41 PM Reply Like
  • Technology Equity Strategies
    , contributor
    Comments (3126) | Send Message
     
    Baird Ben Kallo has gone a long way to blowing the small ingot of credibilty he once had.

     

    Its hard to know who has been hit harder with the stupid stick, Adam Jonas or Ben Kallo.

     

    The choicest moment was when he was on CNBC and said the stock may be promising because Tesla had indicated that the Model X may be even better than they had previously indicated it was.

     

    That was a knee slapper.
    28 Jul 2014, 11:13 AM Reply Like
  • Technology Equity Strategies
    , contributor
    Comments (3126) | Send Message
     
    I guess we may need to give the nod to Ben.

     

    Jonas at least weaseled his way onto a joint book role on that wretched bond offering that ripped off investors so successfully.

     

    Kallo has no discernable payback for the lap dog face licking.
    28 Jul 2014, 11:15 AM Reply Like
  • Bonaire
    , contributor
    Comments (1789) | Send Message
     
    Bond investors were not ripped off. The big boys buy the bond at the inflated stock price and take a matching short position in the stock. If the bond drops in value, the stock short pays off. If it goes up then it is a flat-match of bond value growth and negative stock pps value on the short. The short looks good now since they hold a bond with a promised payoff amount and have growth in the short. It's basically a "buy-write" limited-loss transaction. And uses other peoples' money to finance Tesla.
    28 Jul 2014, 03:56 PM Reply Like
  • chickensevil
    , contributor
    Comments (743) | Send Message
     
    Umm, it was Q2 that was supposed to be crappy not Q3. They said Q2 would likely be negative to flat earnings because of their rapid expansion. I don't think they have given any hard guidance for Q3 yet.
    28 Jul 2014, 11:25 AM Reply Like
  • JackB125
    , contributor
    Comments (428) | Send Message
     
    I think what they meant was that we would be given lower (aka "crappy") 3Q guidance at the 2Q results meeting.
    28 Jul 2014, 12:07 PM Reply Like
  • Technology Equity Strategies
    , contributor
    Comments (3126) | Send Message
     
    Baird, Douherty and Craig Irwin have all come out in the last week and said the third quarter will be weak.

     

    Third quarter guys. 2nd quarter is basicly known.

     

    The new news is that third quarter will also be crappy.

     

    Thats whats been leaked through the analysts.
    28 Jul 2014, 12:12 PM Reply Like
  • Bonaire
    , contributor
    Comments (1789) | Send Message
     
    Q3 weakness - that's part of H2, isn't it. These guys should work in the Government and do BLS reports.
    28 Jul 2014, 03:57 PM Reply Like
  • SivBum
    , contributor
    Comments (2770) | Send Message
     
    Isn't HK a small island that those S models have a range of 200 to 300 miles; should be able to drive round and round the territory many many times in a single charge?
    28 Jul 2014, 11:41 AM Reply Like
  • chickensevil
    , contributor
    Comments (743) | Send Message
     
    There are bridges and roads that take you into China. In addition a lot of these chargers are being put in China more to combat their issues with at home charging. That isn't as much of an issue in the US and some of the other countries as it is in China/HK.
    28 Jul 2014, 11:46 AM Reply Like
  • SivBum
    , contributor
    Comments (2770) | Send Message
     
    So the purpose is for those S-models coming from mainland or ferried from Macau?
    28 Jul 2014, 11:51 AM Reply Like
  • SinoNerd
    , contributor
    Comments (15) | Send Message
     
    HK also has a body of land next to it that is part of HK. It has nature, remote beaches, mountains, etc. And this body is connected to the main island via tunnels. I regularly take 45 minute cabs from my place on the island to a beach or hiking spot off the island - so the range isn't exactly wasted.
    29 Jul 2014, 05:24 AM Reply Like
  • Peter Mortensen
    , contributor
    Comments (3) | Send Message
     
    When the car is backordered and the factory is running at full capacity, it's irrelevant to talk about sales data but rather it is relevant to talk about manufacturing capacity, when looking at the performance of Tesla Motors. The car itself is not the limiting factor it seems. Also, most companies would do horrible without some level of marketing efforts and Tesla Motors has not even started on that path at all. They really do super little in marketing although they get a lot of free publicity from journalists.

     

    Tesla Motors need that battery gigafactory to get prodution capacity up and start changing the world effectively.
    28 Jul 2014, 01:47 PM Reply Like
  • Bonaire
    , contributor
    Comments (1789) | Send Message
     
    At the end of Q3, let's review.
    28 Jul 2014, 03:59 PM Reply Like
  • Trader8877
    , contributor
    Comments (258) | Send Message
     
    Hong Kong, Singapore, Japan and Korea are densely populated and if Tesla hit off, demand could be huge. Again gigafactory is giga important to TSLA.
    28 Jul 2014, 02:59 PM Reply Like
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