Tesla Reported Its First Profit Last Quarter, And Today Everyone's Expecting A Big Loss

Tesla Motors will announce Q2 earnings after the closing bell.

Analysts surveyed by Bloomberg expected an adjusted loss of $US0.19 per share, on revenue of $US387.9 million.

Tesla reported its first ever quarterly profit in Q1 2013. Since then its stock is up 156%. Tesla shares hit an all-time high of $US145.73 on Tuesday, before closing at $US142.15.

Following the Q1 profit, Donn Vickrey at Gradient Analytics graded the earnings report. “Thus far, the company’s results have been driven by nonrecurring boosts and accounting gimmicks, all of which are either unsustainable or purely cosmetic,” he said at the time, giving the company’s earnings an ‘F’.

One of the reasons profit is expected to take a hit in the second quarter is because of lower sales of zero emission vehicles (ZEV) credits and other credits that helped prop up Q1 profits.

John Rosevear at The Motley Fool points out that Tesla’s launch in key European markets (think investing in infrastructure) and changes to its accounting because of its new financing program would also weigh on second quarter earnings.

But there have been analysts that have come out in support of Tesla.

Adam Jonas at Morgan Stanley called Tesla ‘America’s fourth automaker’ and raised his price target to $US103. Deutsche Bank’s Dan Galves raised his price target to $US160. Meanwhile, Andrea James of Dougherty & Co., raised her price target to $US200 from $US90.

We’ll soon find out if Tesla can continue to surprise its investors.

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