Tesla Motors Inc. (NASDAQ: TSLA) reported first quarter 2016 earnings after markets closed on Wednesday. For the quarter, the electric car maker posted an adjusted diluted loss per share loss of $0.57 on adjusted revenues of $1.48 billion. In the same period a year ago, the company reported adjusted a net loss of $0.36 on revenues of $939.9 million. First-quarter results compare to the consensus estimates calling for a per share loss of $0.58 and $1.6 billion in revenues.
On a GAAP basis, the carmaker lost $2.13 per diluted share. Adjusted revenue includes $455 million in deferred revenues resulting from lease accounting.
The carmaker built 15,150 vehicles in the quarter, including 2,659 of the carmaker’s new Model X crossover SUV and 12,851 Model S Sedans. Tesla delivered 14,180 vehicles in the quarter. The company directly leased 1,405 cars to customers in the first quarter worth $149 million in aggregate value.
Tesla says it plans to build about 20,000 vehicles in the second quarter which will result in deliveries of approximately 17,000 units for the quarter. Tesla said that it expects to end the second quarter with a steady production rate of 2,000 cars per week.
The full-year target for deliveries was remains 80,000 to 90,000 units. The company said the delivery outlook is due to growing demand for the both the Model S and the Model X, an improved production rate in Q2, and more production increases for the second half of the year.
The company is planning for Model S adjusted gross margin to approach 30% and Model X adjusted gross margin of about 25% by year-end, with higher Model X gross margin coming in 2017. The company expects non-GAAP expenses to rise by 20% to 25% in 2016 as the company accelerates development work on the new Model 3.
And then there’s this:
Given our plans to advance our 500,000 total unit build plan, essentially doubling the prior growth plan, we are re-evaluating our level of capital expenditures, but expect it will be about 50% higher than our previous guidance of $1.5 billion for 2016. Naturally, this will impact our ability to be net cash flow positive for the year, but given the demand for Model 3, investing to meet that demand is the best long-term decision for Tesla.
Analysts have been looking for second-quarter earnings per share of $0.14 and full-year earnings per share of $1.28. That’s probably out the window now.
But investors don’t seem to care. Shares traded up about 5.5% at $234.03 in Wednesday’s after-hours session. The stock’s 52-week range is $141.05 to $286.65. The consensus price target for the shares was around $253.47 before today’s report with the highest target set at $500.00.
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