Do note the first few questions are from Goldman's Patrick Archambault whose price target change (to $84), "Why Everybody [except Goldman] Loves Tesla" (TSLA)", spanked the stock on July 16.
In late pre-market action the stock is trading at $152.86, up $18.63 but off the $155+ of a few minutes ago.
Via the Tesla Motors Club:
Earlier:Q2 Transcript
Tesla Motors Inc (TSLA)
Q2 2013 Earnings Call
August 07, 2013, 5:30 pm ET
Executives
Jeff Evanson - Investor Relations
Elon Musk - Chairman of the Board, Chief Executive Officer, Product Architect
Deepak Ahuja - Chief Financial Officer
Analysts
Patrick Archambault - Goldman Sachs
Andrea James - Dougherty & Company
Adam Jonas - Morgan Stanley
Brian Johnson - Barclays Capital
Dan Galves - Deutsche Bank
Colin Rusch - Northland Capital Markets
John Lovallo - Bank of America/Merrill Lynch
Craig Irwin - Wedbush
Aditya Satghare - Lazard Capital Markets
Elaine Kwei - Jefferies
Presentation
Operator
Good day, ladies and gentlemen and welcome to the Tesla Motors' second quarter 2013 financial earnings results call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time.
I would like to turn the call over to your host, Jeff Evanson. Please go ahead.
Jeff Evanson
Thank you, Patrick, and good afternoon, everyone. Welcome to our second quarter financial results Q&A webcast and conference call. I am joined today by Elon Musk, Tesla's Chairman and CEO and Deepak Ahuja, Tesla's Chief Financial Officer.
We announced our financial results for the second quarter shortly after the close of trading today. The shareholder letter, financial results, and webcast of this Q&A session are all available at our Investor Relations website at ir.teslamotors.com.
Today's webcast is for your questions and I thank you for primarily using the webcast. That helps save us some money. So thank you. We are going to conduct this Q&A session live. (Operator Instructions) We do plan to end this call in 45 minutes, as always.
During the course of this discussion we may talk about our business outlook and make forward-looking statements. Such statements are predictions based on management's current expectations. Actual events or results could differ materially due to a number of risks and uncertainties including those mentioned in our most recent 10-Q filed with the SEC. Such forward-looking statements represent our views as of today and should not be relied upon after today. We also disclaim any obligation to update these forward-looking statements.
Now, Patrick, could we please have the first question?
Question-and-Answer Session
Operator
Our first question comes from Patrick Archambault with Goldman Sachs. Your line is open.
Patrick Archambault - Goldman Sachs
Yes. Thank you very much, guys. Congratulations on a good quarter. I think, obviously, the execution look great, but my one question would be, just can you help us walk a little bit from I think your margin is adjusted 10% axe ZEV credits. It sounds like you still have levers to put to get to the 25. Can you just go through those with us?
Deepak Ahuja
I think, Patrick, Deepak here. Our automotive gross margin excluding the ZEV Credits is closer to 13% and maybe we can walk you through later on to clarify. I know this is a confusing quarter with significant accounting numbers here, so we will just help you with that. But, we see clearly a path that gets us to 25% excluding ZEV credits given the actions that are underway and have been underway for a while and these relate to on the cost reduction aspects with our cost reduction roadmap, the efficiencies we have in our manufacturing and supply chain that are happening over the second half as well as a combination of the new options that we have put in the marketplace and the margin enhancement we get from there I am sure Elon has more to add.
Elon Musk
Right. Well, I mean, just in summary, we are about 12 points away from getting to the 25% gross margin target with our ZEV credits. And if you look at say Q1, Q2, we increased eight points. So, obviously, on average between Q3 and Q4, we need to do six points per quarter, so we need to make as quite as big an improvement as we did Q1, Q2, but obviously, so significant hill to climb and huge amount of work, but we feel pretty confident about the 25% number. And, it's important to note that we have visibility into these numbers more than ahead of time. So, the things that affect the gross margin, in order for them to, the fourth quarter really needs to be in place, we are essentially in place about a month before the fourth quarter, otherwise the parts that go into the car will not contain the [cost savings] that are necessary. So, essentially things needs to be in place next month and so that's not very far away. That's why we felt confident enough to reaffirm the 25% gross margin guidance [ZEV credits] for the fourth quarter.
Patrick Archambault - Goldman Sachs
Okay.
Deepak Ahuja
Of course major event or something, some really big unexpected thing, but as long as there's nothing really unusual that happens then that should meet that target....MORE
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And many more going back to the IPO, use the search blog box if interested.
