Shares of $TSLA Rise After Missing on Both Top and Bottom Line

Listen to me. No one gives a shit about earnings anymore, especially for companies who make cars that are fueled by batteries made in a fucking giga factory. People don’t sell the stocks, that is run by a man, who wants to colonize the moon, build a hyperloop train and rid the planet of fossil fuels and replace it with one giant fucking solar panel.

Unil Musk messes up in as big way, like purchasing another one of his companies that was heading into bankruptcy, investors will give TSLA the benefit of the doubt. But it’s a bubble, no doubt about it.

Reports Q2 (Jun) loss of $1.06 per share, excluding non-recurring items, $0.41 worse than the Capital IQ Consensus of ($0.65); revenues rose 30.5% year/year to $1.56 bln vs the $1.65 bln Capital IQ Consensus.

Model S orders increased year over year. With the addition of Model X orders, total Q2 net new vehicle orders rose 67% from a year ago.
In Q2, we delivered 14,402 new vehicles consisting of 9,764 Model S and 4,638 Model X, which was slightly higher than what we stated in our July announcement. Model S remains the market share leader in North America and Europe among all comparably priced four-door sedans, and Model X is quickly gaining ground against similarly priced SUVs in all regions.

non-GAAP gross mrgin 20.8%

Outlook: Production and demand are on track to support deliveries of ~50,000 new Model S and Model X vehicles during the second half of 2016. Vehicle production efficiency is improving rapidly and we are now increasing our weekly production rate even further. Barring any further supply constraints, we plan to exit Q3 with a steady production rate of 2,200 vehicles per week, and plan to increase production to 2,400 vehicles per week in Q4. We anticipate that direct leasing will rise from 8% of deliveries in Q2 to about 15% of deliveries in Q3, as we have reached our funding limit with a banking partner. We anticipate adding new partners that will allow us to fund our planned growth in the future. We recognize revenue on directly leased deliveries as cash is received over the lease term of typically three years, on both a GAAP and non-GAAP basis. Model S and Model X cost reductions and improved vehicle manufacturing efficiency should offset the margin impact of the expected mix shift toward our 60 kWh configured vehicles and still drive additional gross margin increases throughout the year.

We expect GAAP and non-GAAP Automotive gross margins excluding ZEV credits to increase by 2-3 percentage points through Q3 and Q4 (previously called for 30% S and 25% X adj. gross margin). Total non-GAAP operating expenses should increase sequentially in Q3 and Q4, and we now expect full year 2016 total non-GAAP operating expenses to increase by about 30%. The increases come from engineering, design, and testing expenses related to Model 3 supplier contracts, and higher sales and service costs associated with expanding our geographic presence. Despite the disciplined pace of capital spending in the first half of this year, we still expect to invest about $2.25 billion in capital expenditures in 2016, in support of our accelerated production plan for Model 3.

“Some Model 3 production equipment is already on line, including initial capacity in our stamping and paint centers. Later this year, we plan to begin construction of new Model 3 body and general assembly centers. Gigafactory construction remains on target to support volume production of Model 3 in late 2017, and we recently accelerated construction to reach a rate of 35 GWh/year of cell production in 2018.”

Shares are up about 1% in the after hours.