Tesla Motors reports its 2Q earnings Thursday after the market close. In May, Tesla said it expected to deliver roughly 7,500 cars in 2Q; most analysts expect it to meet or slightly beat guidance.
There are two big questions for Thursday’s call with CEO Elon Musk: China and the Gigafactory. Alan Ohnsman at Bloomberg has a good preview.
If you’ve never listened to a Tesla earnings call, you really should dial in. The questions from analysts are not nearly as interesting as the way that Musk carefully answers them. It’s all about listening for what he does or does not say about the future.
1. Hey Elon, thanks for taking my call. I know Tesla doesn’t break out exact market percentages, but can you give us some color on demand and sales in China, and also Hong Kong while you’re at it? What kind of volume assumptions from China are baked into the 35K guidance for the year?
2. Hey Elon, can you give us an update on negotiations with Panasonic and the gigafactory. There’s a letter of intent, but when is there going to be a deal? And are there any other partners?
There’s been mounting speculation in recent days about where Tesla will locate the gigafactory. Some of the best on-the-ground sleuthing has been reported by Bob Tregilus, a Nevada resident who talked to local construction workers and took photos at “Project Tiger,” a construction site in the Reno area that some thing could be, or was, the gigafactory site.
But Tesla has five states competing in the bake-off and has said it could break ground on more than one site simultaneously. This thing could be in Reno, or not. The truth is that no one really knows except for Tesla, and many of the stories about where the gigafactory will be are pure speculation.
Where the gigafactory will be is not as important as when it will be operational, because its key to Tesla’s entire strategy: drive down battery costs and unveil the mass market Gen 3.
