NEW YORK (TheStreet) –– Tesla Motors (TSLA) second-quarter results showed there's continued healthy demand around the world for the Model S, but the electric carmaker's upcoming plans for its Gigafactory are where investors are focused.
For the second quarter, Tesla earned an adjusted 11 cents a share on $858 million in revenue, as it delivered 7,579 vehicles. The company noted it produced 8,763 vehicles during the quarter, as it begins to make way for the Model X, which is coming in the spring of 2015. Tesla noted it would be on track for more than 35,000 deliveries in 2014.
Analysts surveyed by Thomson Reuters are expecting the company to earn 4 cents a share on $810.57 million in revenue for the second quarter.
For the third quarter, Tesla said it plans to produce about 9,000 cars in the third quarter. "If we had been able to avoid this production down time, we would have been able to forecast Q3 quarterly production at about 11,000 units," Tesla said in its letter to shareholders. "After considering our planned production and the need to have more vehicles in transit (including the new RHD models), we expect to be able to deliver about 7,800 Model S vehicles in Q3. Without the planned factory retooling shutdown, Q3 delivery expectations would have been approximately 9,500 vehicles."
The company also gave an update on its Gigafactory, which will help the company produce around 500,000 cars a year by 2017. "In June, we broke ground just outside Reno, Nevada on a site that could potentially be the location for the Gigafactory," CEO Elon Musk wrote in the letter to shareholders. "Consistent with our strategy to identify and break ground on multiple sites, we continue to evaluate other locations in Arizona, California, New Mexico and Texas. The final site for the first Gigafactory will be determined in the next few months, once we have full visibility and agreement on the relevant incentives and processes for enabling the Gigafactory to be fully operational to meet the timing for Model 3."
--Written by Chris Ciaccia in New York
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