Tesla Motors Inc (NASDAQ:TSLA) posted yesterday its second quarter results, which beat analysts’ expectations. Its non-GAAP net income was $16 million or $0.11 per share, compared to $0.04 estimated by analysts. Non-GAAP revenue amounted to $858 million, up 55% from a year ago, and 5.8% higher than the estimates.
Colin Rusch, senior analyst at Northland Capital Markets, analyzed Tesla Motors Inc (NASDAQ:TSLA) on CNBC. He said that Tesla is staying on the track as it is improving its gross margins and making materials improvement, and added that the investments they are making in the service side will serve them well over the long term.
Tesla Motors Inc (NASDAQ:TSLA)’s shareholder letter stated that its annualized delivery rate “should exceed 100.000 unites by the end of next year”. Rusch expressed skepticism in this number, saying those numbers can be “pretty robust” and said that Tesla Motors Inc (NASDAQ:TSLA)’s representatives did not want to provide “too much guidance” on the earnings call last night. He said that they committed they would produce 60.000 units in 2015, after “we pressed them on a call last night”. Nonetheless, he emphasized the importance of the growth rate for a market valuation of a company like Tesla Motors, and said that the gross margin estimates have upside potential in the latter half of the decade for the electric vehicle maker.
He named six risks the company is facing: the execution risk, demand risk, subsidy and regulatory risk, financing risk, intellectual property risk and key personnel risk. When asked about singling out the risks investors should be most concerned about, he named the execution and personnel risk: Maintaining an entrepreneurial corporate culture at its core and executing well over the next five or six years, as Tesla Motors Inc (NASDAQ:TSLA) is expected to grow by five- or sixfold will pose the greatest challenge for the firm in his opinion.
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