It’s Friday again! Tired from work? Why not let Call-Levels provide you guys a summary of Tesla’s second quarter earnings report and more details about it?

Elon Musk’s “Secret Master Plan…Part Deux???”

Tesla Motors posts $293.2 million loss for second quarters: (Released: 05/08/2016)

Tesla reported $293.2 million loss for second quarters this Wednesday. It is the biggest challenge faced by Elon Musk’s electric-car company as the company was grappled with new car Model 3, a government safety probe and controversial merger. The adjusted loss in the recent quarter is equivalent to a loss of $1.06 per share, which exceeds the estimation set by Wall Street, $0.59 per share. However, Elon Musk claimed that as soon as they ramp up production of Model 3, Tesla would be profitable in the remaining quarters of the year. Cars are produced much more efficiently and Tesla set a quarterly production record, building nearly 2,000 cars weekly. On top of that, the mass production trend sees a promising outlook, with hope that Tesla will raise production figure to 2400 cars a week in the fourth quarter. However, the merger deal with Solar City Corp, a solar panel company owned by Elon Musk, has opened up another round of heated debate among investors. Read on to find out more!

 

Everyone despises SolarCity deal, except Tesla shareholders: (Released: 05/08/2016)

Mass critics have been saying the SolarCity deal is no doubt a self-dealing, and Elon Musk is accused of using valuable Tesla shares to bail out SolarCity, which the company has seen a 50% decline in past years. Auto industry experts claimed that the so-called vertical integration, the combination of motor generation, storage and auto powertrain into a product, has proved to be a failure by Henry Ford and General Motors. The SolarCity deal will expose Tesla to other uncertainties such as “untested cost, competitive and regulatory forces”. However, shareholders in Tesla surprisingly sided with the management, arguing that with this vertical integration approach, the making of Tesla products can be executed more efficiently and can save more money by selling them together. Mr Dennison of Zevenbergen Capital reiterate that shareholders and investors are buying into Elon Musk’s vision, to accelerate sustainable energy. They are willing to overlook the earning report as they are investing based on faith, just like what investors had done in the past for Amazon.

 

Two Ways to Trade TSLA stock after earning reports: (Released 05/08/2016)

Revenue rose and so did expense. Tesla earning report looks even worse compare to last fiscal year report. Yet, stock didn’t fail much, as experts attribute the mild reaction to Tesla’s top-line growth and sales. Tesla stock has been trading at the top end $270 – $280 while at the lower end $185 since early 2014. Currently, Tesla stock resides in this wide range, which at this point it would have a 50/50 chance of setting the next directional move to either upper or lower end of the range. Since this April high, Tesla has also traded in a “bull flag” pattern. In recent weeks, the stock has reached the resistance of this “flag pattern” and is sitting right below it. A daily close below the $220 area will likely to put downward pressure on the stock price until it hit the $200 support level. While a daily close above $240 will trigger a upswing direction of stock price to $260 – $270 area. Call-Levels users are recommended to set the price level of Tesla stock for these coming weeks if you invest in it.

 

Elon Musk just confirmed the next Tesla coming after Model 3: (Released: 05/08/2016)

Again, Elon Musk spilled the beans, confirming the next Tesla after the Model 3 will be a compact SUV called Model Y. This compact SUV will have similar pricing relationship with Model 3, but the product Model Y most likely will not going to reach consumers until late 2018 the earliest. Little can be said about Model Y now as Tesla is still proceeding with the production of Model 3. The concept of mini-bus is also introduced by Musk as part of the “secret master plan” This “mini-bus” will be built on the Model X chassis, however. With the addition of Model Y, Tesla now has a lineup consist of Model S,3,X, and Y. And it spells “SEXY”!