Tesla is set to announce its first quarterly revenue report today, after market close and everybody is dying to see the numbers. And since all expectations are for greatness, could Tesla be the ideal company to invest in?
CEO Elon Musk has thrown Tesla at the top of news outlets everywhere, after announcing the release of its battery of the future, the Powerwall. It is expected to be able to power an entire house, alongside solar panels, thus making home owners independent from fossil fuels.
But the great expectations of financial analysts mainly rely on its electric cars, making the Powerwall a whopping bonus. With 55,000 cars that are about to be delivered, according to Musk, Tesla should be in its best shape ever.
This number includes both its Model S electric sedan and its Model X electric crossover, that is set to hit the market this summer. The company has enabled pre-orders for this new car and it has already become already insanely popular.
Tesla delivered 10,030 cars during last year’s fourth quarter, thus accomplishing a 55% increase compared to the fourth quarter of the year before that. This overwhelming growth is consistent with the progress advertised by Elon Musk for Tesla. And if things go as the company predicts, the delivery rate will rise up to 70%.
If this quarter is going to continue on this great streak, it will only add more weight to Musk’s words and it just might make Tesla the ideal company to invest in.
Therefore, there is a lot of pressure on today’s review. The main expectation that Tesla will have to meet today is a $1.04 billion revenue, but they seem to be confident that they will manage to do so.
The only thing that could bring their numbers down is the continuous investment necessary to power the production line of its electric cars. More orders mean more cars, and more cars need more factories for them to be produced in. Also, service centers need to be established for the maintenance of the electric cars and this requires even more money.
Furthermore, the industry behind Powerwall will be in need of expansion, as Tesla promises a “gigafactory” to produce green batteries for everyone. The company believes in its product so deeply, that it said it will continuously boost its production, no matter what the present demand for it is. Tesla has deem this to be the biggest challenge regarding Powerwall.
With its upcoming Model X electric crossover set to begin deliveries this summer and with the Powerwall being the first green battery of its size, Tesla’s future can only go up. But what every investor wants to know is just how high up. And they will get their answer today, after market close, when the review of the first quarter will be revealed.
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