Tesla (TSLA) produced 7,535 Model S units in Q1 (6,587 in Q4). Guidance was 7,400. The company delivered 6,457 units, slightly above guidance of 6,400. Tesla expects to produce 8,5K – 9K Model S units in Q2, and they expect to deliver 7,500 units.
(Picture: BMW i8)
The company expects to be «marginally profitable» in Q2. The EPS consensus is at $0,27. Full-year free cash flow is expected to be slightly negative. Operating cash flow was $61M, and capex totaled $141M. The full-year capes forecast is $650M – $850M.
Gross margin was 25,4%. The stock will open down about – 8,5% today. It declined -2,86% yesterday. The stock price is $201,35, and the question is: Are Tesla stocks overvalued? They are doing it well but are Tesla`s market cap reasonable given the results and outlook?
Despite the success many companies have, its stock can be massively overvalued, and some investors can have unrealistic expectations going into earnings. They did probably not sell enough cars to satisfy the investors, and they need to sell plenty for the rest of the year to justify current price.
So far, they are still in a growth phase, putting cash back into the company to grow. The cost of batteries when they need to be replaced somewhere between 200,000 and 400,000 miles will be significantly cheaper in the future.
I think that Tesla is a good brand, but they are not alone on the market, and many other companies will follow. Take a look at BMW i8, which is a plug-in hybrid. The 2015 model has a 7,1 kWh lithium-ion battery pack that delivers an all-electric range of 37 km (23 mi).
BMW Vision Efficient Dynamics concept car is a plug-in hybrid with a three cylinder turbo diesel engine. The initial turbo diesel concept car was unveiled at the 2009 Frankfurt Motor Show, and deliveries in Europe are scheduled to begin in next month, and about a month later in the U.S.
The problem with Tesla is the limited time on the battery. With BMW i8 you have both, battery and gas, but the battery is in my opinion too small and limited. Anyway; this is just the beginning of a new era in the car industry.
Mercedes B-klass Electric Drive will be launched in the U.S soon. The engine is from Tesla, and they will fight against VW e-Golf, Nissan Leaf and BMW i3. The price for the Electric Drive will be $41,450.
Daimler are stock owner in Tesla and they are the factory that have developed the engine in the new car. The engine is fast and seems to be a great unit. It is a Tesla engine. Very good for Tesla and CEO Elon Musk, but are the Tesla stock price right?
CEO Elon Musk admitted several months ago that the stock price is more than they have any right to deserve. Tesla is overvalued using any reasonable valuation metric. Market cap is $27,000,000,000. This valuation will probably be repriced much lower, and that`s probably why it will plunge today.
Tesla have to increase its intrinsic value the next years. If not I think the stock price will decline to a lower level to reflect the company`s right valuation. A bearish commentary from Elon Musk is something long investors should take notice of.
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