The electric vehicle producer reported ($0.58) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.50) by $0.08.
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For now, though, Tesla isn’t suffering from any lack of interest in it. The California electric-car company is struggling to meet high demand for its new Model X SUV and also complete development of its third vehicle, the mid-size Model 3 sedan.
Skittish investors have pulled away from Tesla, recently dealing the stock its biggest stumble in more than a year. The son of former Fresh Prince of Bel-Air Will Smith and Jada Pinkett-Smith was spotted by photographers posting up with his Tesla Titanium Model X in Los Angeles this Monday. This might just translate into a 15% weekly loss for the company, to the horror of investors.
Much of the anxiety about competition has centered on self driving cars, because Tesla’s founder Elon Musk says new versions of his cars will have this feature. Some analysts, for example, estimate the company’s earnings for the fourth quarter to be of 17 cents a share, despite recent stock drops. Analysts expect Tesla Motors to post earnings of $0.11 per share and revenue of $1.81 billion for the quarter.
Share reaction: Tesla shares have lost 26% in the past 12 months and 32% in the last three months.
In addition, “cash flow expectations will be very important”, he said.
In order to be able to produce the Model 3 for a lower price, so as to keep their promise of making it far more accessible than their previous models, Tesla will need to start serious work on developing their superior batteries.
The Tesla Model X arrived in the hands of more than 120 owners some time ago and people are now paying attention to what is going to come with the 2017 Tesla Model 3.
After all, if Tesla manages to price it at $30,000 and provide 300 miles or bit less range for the vehicle, it could easily win over its competitors.
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Tesla is also likely to provide guidance for 2016 deliveries.
