Tesla Motors (TSLA) Pops Higher Amid Mixed Q3 Results; Sees Margin Improvement in Q4, FY13


Tesla Motors (Nasdaq: TSLA) is ticking higher Monday following third-quarter results released earlier on the session.

According to Tesla, manufacturing rose from 5 cars at the start of the quarter to 100 by the end of it. In total, about 350 Model S sedans were produced, delivering 250 to customers. Since the end of the quarter, production is now at 200 cars per week

Revs rose 88 percent to $50.1 million. Gross margin was down 17 percent in the quarter, while adjusted net loss widened from $56.85 million out to $97.12 million, or 92 cents per share.

The Street was looking for revs of $48.5 million and a loss of 90 cents per share.

Tesla expects gross margin to improve to 12.5 percent before the end of 2012, moving to 25 percent in fiscal 2013.

Looking ahead, Tesla maintains fiscal 2012 sales expectations, seeing positive free cash flow by the end of the fourth quarter. R&D spending will also remain flat for the current quarter. The company noted, "Since the beginning of Q3, we have opened up showrooms in seven new locations, including Long Island, New York, Paramus, New Jersey, and Boston, Massachusetts. There are now 29 showrooms around the world. We plan to open five more showrooms this year at strategic locations in North America, including Miami, Florida, Morristown, New Jersey, and McLean, Virginia...Tesla will start deliveries in Europe during the first half of next year with the Signature Series, all of which have been reserved for months."

Last week, Tesla announced that its Model S was selected as AUTOMOBILE Magazine's "Automobile of the Year."

Ahead of the bell, Tesla is up about 4.6 percent. The stock is just about flat over the last month as well as year-to-date 2012.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Earnings , Stocks

Referenced Stocks: TSLA



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