American electric automobile maker Tesla Inc is set to release its third-quarter earnings results for the year on Wednesday. The company is currently in the middle of a busy season following the official release of their much-anticipated Model 3 vehicle which was unveiled last year and received more than half a million in pre-orders and reservations. Model 3 reservations were last recorded to be at around 1,800 orders per day following the official release a couple of months ago.
Despite the company’s total delivery and production numbers in the past couple of quarters, Tesla raised its outlook for the total production of the Model 3 including delivery. Tesla announced a couple of months ago that it plans to expand their production by up to 1500 for the quarter with a target to increase production to 5,000 Model 3 units per week before the end of the year.
However, Tesla shares suffered recently after the company posted earlier during the month that its Model 3 deliveries fell short of expectations. Tesla shares declined by as much as 4% following the release of their delivery reports despite a number of investors maintaining a positive outlook on the company’s shares which have surged since the beginning of the year while some others have pointed out the danger of Tesla’s massive cash spending in the past couple of quarters.
During the second quarter, Tesla posted losses that were smaller than expected as the company continuously expanded its operations to meet Model 3 demand. Tesla posted a loss of $1.33 per adjusted share with their revenue coming it at $2.79 billion which was better than most analysts estimates of $1.88 per share in losses on a revenue of $2.51 billion.
Prior to the earnings report, Tesla has officially launched the affordable Model 3 vehicle. At the same event, Tesla also made an announcement regarding its plans to produce as much as 500,000 vehicles per year starting 2018 and has already burned more than $1.16 billion in cash during the first half of the year in their efforts to expand and boost production.
For the third quarter, Tesla is expected to post a revenue of around $2.93 billion while some forecasts are down to revenue estimates of $2.7 billion. Tesla Inc is also forecasted to post losses of $2.27 per share by up to $2.54 per share.
Aside from the earnings numbers, Tesla is also expected to make updates regarding the ongoing production and deliveries of their Model S and Model X vehicles as well as updates regarding their production rate of their in-demand Model 3 vehicles.
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