(Photo credit: Tesla Motors Image Library)
Tesla (TSLA), the electric vehicle manufacturer will report its FQ2 '15 results after the market close today and both Estimize and Wall Street are predicting a fall in EPS QoQ. Year-to-date (YTD), Tesla has performed well for investors providing a capital return of 19.75% relative to the Nasdaq index which has appreciated 9.14%.
Leading into Tesla's FQ2 '15 results, Estimize are predicting a fall in earnings YoY and a slight fall QoQ. Estimize are predicting a negative EPS figure of -$0.50 which is higher than Wall Street's prediction of -$0.57 Estimize predict $1.163B in revenues and Wall Street have a consensus of $1.162B.
The numbers aside, one of the most important factors in today's report will be the company's guidance for some of its upcoming vehicle releases. Tesla's mass market car known as the Model 3 is expected to be launched within the next 36 months, any change in the expected schedule may influence Tesla's price action after the report. Further, details surrounding the release of Tesla's newest upcoming model, the SUV Model X will be important. Currently, it is expected that the Model X will be available for purchase in September, the market will want reassurance form Elon Musk that the vehicle will be ready next month.
Investors and analysts will also be interested to hear from Elon Musk with respect to the announcement the company made on Wednesday introducing a referral program for Tesla owners. The referral program allows Tesla owners to earn $1,000 for each referral they get from other buyers of Tesla vehicles. The referral program has received a mixed reaction from the market, with some analysts excited about the idea and some analysts taking this as a bearish precursor to sales. Market participants will be looking to obtain more guidance on the decision and what the expected benefits are.
Another key update will be expected on Tesla's development of its autopilot technology for its Model S car. Currently, the autopilot allows drivers to automatically change lanes on a highway with a touch of a button. The current autopilot can also read speed-limit signs and detect pedestrians. Elon Musk recently announced through Twitter that the new autopilot feature will allow drivers to travel distances on highways “without touching any controls at all.” This development is obviously exciting for investors and analysts and will be focused on during the company's quarterly report.
