The rubber starts to meet the road with Tesla Motors

Tesla Motors (TSLA -1.3%) reports after the bell with the Street looking for EPS of $0.04 and revenue of $802M. The crowdsourced forecast at is for a healthy EPS beat ($0.12) and revenue miss ($799M).

The company's average transaction price ($106K in Q1), view on meeting its annual production target (35K), and gross margin rate (28% target for FY14) will be closely watched - while anything positive or negative on the company's Gigafactory and Model X production timetable could send shares into a flurry of activity.

Sales in China started during the quarter and could top 1K, according to Barclays.

Gigadreams: California, Texas, Nevada, New Mexico, and Arizona are all in the running to be the location for the Gigafactory. Tucson, Arizona isn't considered the front-runner to land the facility, but deserves high marks for creativity by sending Tesla execs a pre-approved building permit.

Options trading on Tesla is factoring in a 7.5% post-earnings move which is a low level of volatility for the stock historically.

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Comments (13)
  • chipdoctor
    , contributor
    Comments (2663) | Send Message
    With the average Model S transaction at $106K as a reference, the supposed $35K vehicle is going to be at least $50K when delivered.
    31 Jul 2014, 01:28 PM Reply Like
  • BGDD
    , contributor
    Comments (584) | Send Message
    So it'll run into the same "not enough rich treehugger" problem?
    31 Jul 2014, 01:39 PM Reply Like
  • Stephen Pace
    , contributor
    Comments (812) | Send Message
    @chipdoctor: As long as a base model can be purchased for $35k before incentives, than I'm completely fine with a nicely optioned version at $50k. Tesla would hopefully have a decent margin at that price, and I have at least 3 family members that will be Model III customers in that range if the Model III is anywhere as awesome as the Model S.
    31 Jul 2014, 01:44 PM Reply Like
  • JackB125
    , contributor
    Comments (427) | Send Message
    @stephenpace, We are running in parallel with our Model 3 plans! I'm also budgeting $50,000 per vehicle & I'm buying 3 Model 3's. One for my wife & one for each of my two daughters. I'd be getting 4 if I weren't medically restricted from driving -- darn! When it comes time to order them, we should compare options. Best regards.
    31 Jul 2014, 03:19 PM Reply Like
  • capt601
    , contributor
    Comments (2108) | Send Message
    @chippydoctor. Which makes it still cheaper than 75% of gas vehicles which zero gas to purchase, and no dealers to give money to for unneeded maintenance. Enjoy spending $50-90 per fillup in your gas guzzler.
    31 Jul 2014, 11:38 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5243) | Send Message
    I went to School at University of Arizona in Tucson. They are very creative over there. Also a lot of sunshine and hot weather.
    31 Jul 2014, 01:32 PM Reply Like
  • berniespear
    , contributor
    Comments (251) | Send Message
    Go CATS!
    31 Jul 2014, 03:23 PM Reply Like
  • 523546
    , contributor
    Comments (65) | Send Message
    Model S starts at $70K. Figure 20% smaller car, 30% reduction in battery cost, easily $35K-$40K Model 3.
    31 Jul 2014, 01:50 PM Reply Like
  • ChasL
    , contributor
    Comments (48) | Send Message
    I am not a rich tree hugger. However I do appreciate a forward looking American Company that is run by an executive that knows how to work.
    And dont forget that Tesla also makes a damn fine automobile...
    31 Jul 2014, 02:37 PM Reply Like
  • lithium2014
    , contributor
    Comments (11) | Send Message
    I believe the contest to land the Gigafactory has ended. Tesla is moving earth in Nevada.
    31 Jul 2014, 03:38 PM Reply Like
  • Raster
    , contributor
    Comments (824) | Send Message


    My understanding is they would do site work on multiple sites, selecting the final one at later. Good risk mitigation strategy. Have a last minute legal challenge or regulatory hurdle, State A? That's fine. We'll go to State B.
    31 Jul 2014, 04:07 PM Reply Like
  • azgog
    , contributor
    Comments (209) | Send Message
    I predict a major oil supply dislocation by 2017, if not sooner. Then Tesla will be able to set whatever price they need for the Model3.
    31 Jul 2014, 04:01 PM Reply Like
  • surferbroadband
    , contributor
    Comments (5243) | Send Message
    Is there are problem with SA on commenting?
    31 Jul 2014, 04:21 PM Reply Like
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