Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Honestly, I am impressed yet again. A lot of negative press today on Tesla, but in reality, they've been very creative in many ways with these new systems. The "summon car", auto-park (with you outside), and obviously the technology they are using for the lane keeping and crash avoidance is far superior to anything else available.
I also liked the "resistive steering", in other words an active feedback if you are steering into something dangerous, but it will allow you to retain control.
It seems a lot of people are panicked about liability.
Elon himself mentioned you may only use the "summon car" mode on private property, which clearly sounded like a liability clause.
Has anyone found any statements by Elon or Tesla that speak directly to insurance liability or Tesla's own liability with regards to the automated driving systems?
I'm a big fan of Elon Musk, this interview below is really inspiring and interesting for anyone who isn't too aware of who he is or what he's about, I'm not sure how a big a celebrity he is in the US, in the UK most people haven't heard of him.
Analyst non-GAAP EPS estimates continue to decline.
Is a Q3 non-GAAP loss possible?
Falling estimates makes a beat easier.
Markets have settled down. It may be time to buy.
When it comes to Tesla Motors (NASDAQ:TSLA), profitability is one issue that continues to plague the company. This is an item that I've detailed over time, and one that I said is most important currently. Recently, we've seen analyst EPS estimates continue to decline, and they just hit two key points. Today, I'll discuss why the view of Tesla is becoming more bearish, and why this could be a reason to buy shares.
The company detailed in its Q2 investor letter how it expected to see marginal non-GAAP profitability in Q3. This is due to a couple of factors. First, due to a production shutdown, the company only expects to deliver 7,800 vehicles in the quarter. Without the shutdown, that number would have been about 9,500. As a point of reference, the company delivered 7,579 vehicles in Q2. We'll find out the actual number when Tesla reports on November 5th.
With the company only expecting another 200 or so more deliveries, that obviously means revenues won't be tremendous. When Tesla reported Q2 results, analysts were looking for more than $996 million in non-GAAP revenues during Q3. Currently, analysts are looking for less than $894 million. The reduction is obviously due to less vehicle deliveries. In Q2, Tesla reported non-GAAP revenues of $857.5 million.
With revenue estimates coming down by more than $100 million, you had to figure that non-GAAP EPS estimates would drop as well, and they have. At the Q2 report, analysts were looking for a profit of $0.30 per share on a non-GAAP basis. Tesla stated that it expected its non-GAAP automotive gross margin in Q3 to be consistent with the prior quarter. Additionally, R&D expenses were expected to be up 20% sequentially, with SG&A expenses up 15% sequentially. Also, the share count rises by the quarter, and that hurts the earnings per share number.
Currently, analysts are expecting Tesla's Q3 non-GAAP EPS to be zero. We've hit the flat point, and that's fairly important. Even in my latest article, forecasts called for a penny profit, and now that is gone. If we get any more estimate cuts, analysts will be looking for Tesla to report a non-GAAP loss in Q3. However, there is one good piece of news here. As estimates continue lower, it makes it easier for Tesla to beat. In the table below, you can see how Tesla has done a good job of blowing away estimates over the past year.