Tesla Slashes Outlook For The Year And Shares Dip 6%

Tesla Production Plant

Tesla has reported second-quarter earnings and immediately following its earnings call the company slashed yearly estimates.

Tesla reported a smaller-than-expected loss per share in Q2 while its vehicle delivery outlook for 2015 disappointed.

Investors pushed shares down by 8% in after our trading, before the stock rebounded slightly by 6:50 p.m ET.

Tesla recorded a loss of $0.48 per share on an adjusted basis for Q2 2015.  Revenue met expectations at $1.2 billion.

Tesla founder Elon Musk said the company expected to ship between 50,000 and 55,000 vehicles in 2015, lower than the 55,000 vehicle deliveries it previously forecast.

In the second quarter, Tesla delivered 11,532 vehicles. The company expects to deliver the same number of vehicles in Q3.

Wall Street analysts were expecting $0.59 per share alongside $1.19 billion in revenue and 10,000 to 11,000 vehicles delivers. The company is expected to hit 55,000 vehicles delivered by the end of 2015.

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In a letter to shareholders the company writes:

While our equipment installation and final testing of Model X is going well, there are many dependencies that could influence our Q4 production and deliveries. We are still testing the ability of many suppliers to deliver high quality production parts in quantities sufficient to meet our planned production ramp. Since production ramps rapidly late in Q4, a one-week push out of this ramp due to an issue at even a single supplier could reduce Model X production by approximately 800 units for the quarter. Furthermore, since Model S and Model X are produced on the same general assembly line, Model X production challenges could slow Model S production. Simply put, in a choice between a great product or hitting quarterly numbers, we will take the former. To build longterm value, our first priority always has been, and still is, to deliver great cars.

Tesla expects capital expenditures to total $1.5 billion this year.