Tesla's Fourth Quarter Guidance

The auto making giant's guidance for the fourth quarter shows a lot of positives for the investors to look forward to

Tesla Motors witnessed a much needed high on the index right after it announced its third quarter earnings results, which turned out to be very positive for not only the investors but also for the analysts who thought the company will not be able to deliver a bullish quarter. The earnings call did not only hear the giant informing the market of its earnings, but the management also suggested a great guidance report for the upcoming quarter which turned out to be a big green signal for the investors to begin with their investments in the company without thinking twice. This positive guidance also raised the share price by a 10% after the call and the giant also informed the industry about some of its future plans for the analysts to look forward to.

One of the main things that were discussed in the call was Tesla Energy and how its increasing demand in the market was just turning out to be how the company expected it to be. The management announced in the call that it will be transferring the production of batteries that it was previously doing at Fremont to now be done at the Gigafactory, which is being carried out much before it was actually planned by the hybrid car makers.

This new change of plan by the auto makers shows that the giant is in a good position to report a stronger than before growth in the new few quarters, especially in the one right after the third one. One more thing that the giant is currently looking forward to is to spend much less in the upcoming year as it has been overdoing the spending in the present financial period. The decided numbers that should have been spent by the luxury car makers in the beginning of the year was around $1.5 billion for the whole year, but the auto company ended up spending around $1.7 billion in its expenditures, which actually has put the analysts in quite a worry about how much the giant seems to be spending when it really shouldn’t be doing so.

Analysts are also seen talking about how if the smart car producers cut down on the expenditures next year; they will turn out to have a better go at things in the stock market where a higher and better cash flow will also be witnessed. The giant has a lot to look forward to, with the expenditures lessening down and the returns from the battery making business increasing on a big level.