It is reported that Tesla released the financial report for the second quarter of the 2017 financial year. The report shows that Tesla recorded business revenue of 2.79 billion U.S. dollars in the second quarter, which is higher than 1.27 billion U.S. dollars in the same period of last year. The net losses reached 401 million U.S. dollars, which is higher than 293 million U.S. dollars in the same period of last year. The net losses attributable to ordinary shareholders were 336 million U.S. dollars, which is higher than 293 million U.S. dollars in the same period of last year. The adjusted losses per share and business revenue of Tesla in the second quarter are better than expected, driving its stock price hiking nearly 8 percent at 19:14 local time.
[Prospects]
Tesla indicated that the shipment of Model S and Model X will increase in the second half compared with that of the first half.
Tesla indicated that its gross profit margin of the vehicle business not under the U.S. Generally Accepted Accounting Principles will be affected by various factors in the remaining time of the year. The overall gross profit margin of Model S and Model X not under the U.S. Generally Accepted Accounting Principles will decline slightly from that of the second quarter while the gross profit margin of Model 3 will turn positive in the third quarter. Tesla also expected that the gross profit margin of Model 3 will remain positive in the fourth quarter and will hike to the target of 25 percent in mid-2018.
Tesla expected the operation leverage will significantly improve in the second half of 2017. The business revenue will see high growth in the second half while the operation expenses will keep the same level. The operation expenses are expected to be about 2 billion U.S. dollars in the second half of 2017.
[Stock price changes]
The stock price of Tesla jumped 6.32 U.S. dollars and closed at 325.89 U.S. dollars, hiking 1.98 percent. During the trading after closing at 19:14 local time, the stock price of Tesla soared 25.76 U.S. dollars to 351.65 U.S. dollars, up 7.9 percent.
[Tesla’s A-share partners]
In the current A-share market, about 10 listed companies are Tesla’s suppliers or partners, including Ningbo Joyson Electronic Corp. (600699.SH), Shenzhen Fountain Corporation (000005.SZ), Zhejiang Wanfeng Auto Wheel Co., Ltd. (002085.SZ) and Tianjin Motor Dies Co., Ltd. (002510.SZ).
Joyson Electronic is a supplier of Tesla’s vehicle safety and interaction businesses. Based on its annual report, Joyson Electronic and KSS are highly recognized by complete vehicle manufacturers and have obtained new orders of nearly 5 billion U.S. dollars, over 40 percent of which are from Asia. It made progresses in exploring new clients and has become a supplier of Tesla and Japanese clients (Suzuki and Renaud Nissan). Besides SAIC Motor and Chang’an, it also became a supplier of GAC and BAIC in China. The company also disclosed that its human-computer interaction products have been applied in top clients’ models and have entered the supply systems of Tesla and Geely-Volvo.
Tianjin Motor Dies briefly disclosed the progress of its orders with Tesla and other clients. The company has obtained orders for new energy vehicles with over 300 million yuan so far. Such clients include Tesla, NextEV and Hozon Auto.
Shenzhen Fountain and Sinomach Automobile Co., Ltd. (600335.SH) also disclosed their partnership with Tesla in their annual reports. Shenzhen Fountain indicated that as at the end of 2016, it has established partnership with Potevio New Energy, Tesla, BYD and Bens with its projects under construction. It also developed charging services for new energy vehicles and new types of electric vehicles.
Sinomach Automobile indicated that it focuses on the imports of vehicles. It has established partnership with Chrysler, Jaguar Land Rover, General Motors, Ford, Tesla and Porsche. To introduce diversified models to meet the demand in the Chinese market, it has established a core system with full-chain services in the import of vehicles. In addition, Sinomach Automobile also renewed the logistics services to Tesla as well as the lease business with Tesla, BMW, JAC and other e-vehicle manufacturers.
Lens Technology Co., Ltd. (300433.SZ), Zhejiang Wanfeng Auto Wheel Co., Ltd. (002085.SZ) and Huagong Tech Company Limited (000988.SZ) listed Tesla in their lists of partners.
Shenzhen Senior Technology Material Co., Ltd. (300568.SZ) announced in its annual report that Tesla offered to cooperate with it. The company indicated that it will deepen the partnership with overseas well-known lithium battery manufacturers and strive to enter the global supply chains of Tesla, BMW and other leaders in the new energy industry as soon as possible and expand its share in the international market.
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