Tesla century city

The shares of Tesla Motors Inc (NASDAQ:TSLA) are trading lower during the after hours trading today after reporting its financial results for the second quarter.  Investors were not pleased with the company’s vehicle delivery outlook for fiscal 2015.

The stock price of Tesla declined more than 5% to $255.25 per share at the time of this writing around 5:50 PM in New York or during the after hours trading.

Tesla second quarter financial results

Tesla Motors reported non-GAAP net loss of $0.48 per share compared with the $1.02 per share expected by Wall Street analysts. The electric car manufacturer” revenue increased 40% from a year earlier to $1.20 billion, slightly higher than the $1.27 billion consensus estimate based on data compiled by Thomson Reuters.

During the quarter, Tesla Motors said its automotive revenue was $1.12 billion. Its services and other revenues were $77 million. The company said its automotive margin excluding ZEV credits was 23.9%.

Tesla Motors ended the quarter with $1.15 billion in cash and cash equivalents. The electric car manufacturer completed $500 million asset based credit line that can be expanded to $750 million.

Tesla vehicle deliveries and production

Tesla Motors produced 12,807 vehicles, higher than its target of 12,500 vehicles. Its production represents a 46% increase from last year. The company delivered 11,532 units in the second quarter.

Looking forward, the company expected to produce 12,000 vehicles for the third quarter, a decline of 807 units sequentially.

Tesla Motors estimated that it would be able to deliver around 50,000 to 55,000 vehicles (Model S and Model X) this year.  It appears that the electric car manufacturer is not confident enough to deliver as much as 55,000 vehicles, which matters most for investors.

The company remained confident that it will be able to start delivering the Model X on the latter part of the third quarter. Tesla Motors said it can produce 1,600 to 1,800 Model S and Model X vehicles per week next year.

“The next few years at Tesla will be transformational from a product perspective, starting with significant new Autopilot features and the launch of Model X later this quarter. In Q4, we will ramp production and delivery of Tesla Energy products, and in Q1 2016 we plan to reveal the Model 3 design, with first deliveries expected in late 2017,” according to Tesla CEO Elon Musk and CFO Deepak Ahuja.