Brisk Order for Solar Tiles Confirmed by Tesla

TeslaIn May’s first week, Tesla (NASDAQ: TSLA) which is an electric car manufacturing company that the revenues in the first quarter of fiscal 2017 has doubled as compared to the similar period last year. The revenues are more than the expected speculation of Wall Street’s consensus estimates.

However, it is to be noted that a more extensive than anticipated net loss has been reported by the company. This, in turn, has dipped the stock prices by 10 percent to about $290.

However, the right thing to note that the stocks climbed quickly back to $324 level. One of the biggest reasons for the share price recovery was the record 25,051 deliveries in Q1.

Now, solar tile manufacturing, which is another venture of Tesla, has caught the attention of the market as explained below. Hence, we expect that the stock will move up into an unchartered region in the coming days.

Transport Evolved

The Palo Alto, California-based company has reported revenue of $2.70 billion in Q1 of the fiscal year. It is up from the similar period last year with $1.15 billion and greater than $2.62 billion expected by the analysts of Wall Street. In the recent quarter, the automotive revenue more than doubled to the figure $2.30 billion as compared to $1.03 billion during the same period last year. In the first quarter of 2017, the energy generation and storage revenue were $213.94 million with an increase of $22.73 million during the same period last year.

The net loss widened to $330.28 million in the quarter ended March 2017 as compared to $282.27 million during the same period last year. The net loss in Q1 2017 narrowed to $2.04 per share from $2.13 per share during the same period the previous year because of high share count on per share basis. By GAAP, there is a 27.4% increase in automotive margins from 24% last year. There is a 29.1% increase in gross margins in Energy generation and storage segment during the Q1. During the same period the previous year, the gross margin was 20.3 percent.

The net loss in the quarter ending in March 2017 was $214.99 million or $1.33 per share after excluding acquisition-related costs among others. During the same period last year, the net loss was $192.61 million or $1.46 per share. The analysts at Thomson Reuters have created a poll in which it has anticipated a net loss of $0.81 per share.

However, the company has confirmed that it would deliver 47000 to 50000 cars in the first half of 2017 and it is on track. Tesla is also in the process of opening some new service centres and stores before launching Model 3. Some months down the line in this year, the company aims to increase the vehicle production to 5,000 per week. Tesla is likely to achieve the production figure of 10,000 vehicles per week next year.

The company has also confirmed that solar tiles order has surpassed the expectations. The company is hopeful that the demands would last well into next year after taking into consideration of the production ramp up.

The cash balance stands at $4 billion after Q1, and it is up from $3.4 billion in the last quarter. The stock is expected to remain bullish in the short term after strong growth in revenues, optimistic outlook for solar tiles and on track deliveries.

The stock is consolidated at 315 levels as indicated by the historical price chart. The momentum is on the rise and MACD has crossed zero line. Hence an increase in the stock is highly likely.

Tesla Stock Price - May 30th 2017

Tesla Stock Price – May 30th, 2017

We recommend all binary traders to BUY a CALL Option from a reputed broker keeping the uptrend in mind. The expiry time should be set around 7th of June, and one needs to BUY the Option when the stock is trading around $325 on NASDAQ.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.


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