Tesla Motors Reports Disappointing Quarterly Results
Tesla Motors announced its Q4 results on 11th February 2015 which turned out to be unexpectedly very disappointing. The car makers did not even reach their own predictions that they made about their final quarter revenue generation.
The company had expected to sell over 11,180 cars in the last quarter of the year. According to the Q4 results, only 9,834 cars were sold which proved the company’s guidance about their sales to turn out to be wrong.
The reason for such a big difference in the expected revenue generation and the actual revenue generated was that the company delivered cars in a smaller number than expected.
Financial analysts had expected the car making company to raise $1.23 billion but Tesla reported total revenue generation of $1.1 billion.
According to the reasons Tesla presented in its letter to the investors, one of the reasons why the company’s guidance for the quarter turned out to be wrong was the problems in deliveries that the company faced due to bad weather conditions and shipping issues. This, however, was the first time for Tesla that it could not give the correct guidance for its deliveries.
The car making company also said that the fall in the total sales of the quarter was not due any demand issue as demand for the Tesla cars were at their peak. At the start of 2015, Tesla recorded 20,000 orders for its soon-to-come Model X car and 10,000 orders for Model S.
After Tesla Motors announced its 4Q results, the company’s share price dropped 3% as the investors tried to get over the disappointment.
On revenue of $1.1 billion, Tesla faced a loss of $16.2 million in the last quarter of 2014. The sales in China are not going as the company planned them to be and the CEO of the company is also expected to fire a few employees as a result.
The company Tesla Motors Inc (NASDAQ:TSLA) says that it plans to sell over 55,000 Model X and Model S cars in the year 2015. The Model X car will be launched in the market in the 2nd half of the year.
The Q4 sales report came out to be unsatisfactory, even more than what the company expectation for the quarter were. Tesla now needs to work on getting the investors’ confidence back by working on making the company’s long term plans become successful, as it is vital for the company’s financial standing.
