What Does Tesla Need to Ensure Great Revenue Growth?

The smart car making company currently needs to make sure it starts making revenue out of the operations it has already established, so that it does not need more investments to go forward

Tesla Motors is going to report its earnings for the third consecutive financial quarter of the current year in the first week of November and analysts have begun to analyze how the auto making company could be preparing for the investors to be announced in the report, and where it could go from there. Analysts have deemed this particular earnings call as a very important one, as it currently the car making company seems to be facing some issues while carrying out huge plans of production of not only its vehicles, but also of batteries. This call has also turned out to be coming in much later than it should originally come as, as the giant started its fourth quarter a month back.

Tesla stock analysis suggest that analysts also believe that there are a couple of more important factors for Tesla cars, apart from its revenue generation and EPS that should be taken into consideration for the determination of its success over the past three month time period. The fact is that the hybrid car makers are currently seen to be putting in large amounts of money into huge projects like the production of Model S and Model X, along with the establishment of Gigafactory that has been deemed as one of the biggest investments that the giant has made in any of its other projects. All of this seems great on the giant’s part but the fact remains, that there are a lot of cash flow issues now that the investments are being made in such huge figures. Presently, the giant is looking for more investments and a cash flow that is more on the positive side as compared to how it is now.

The smart car making company needs to start making its cash flow come in from its operations more than expecting it to come from new investments, according to analysts. Once it makes sure that this is done, only then it will be able to ensure the investors and the shareholders that it is capable of maintaining a stable position in the market without being constantly in pressure of more and more loans. Since the expenditures of capital are being done in a huge numbers, the electric car maker needs to carry this out perfectly in order to make its investors satisfied.

On the other hand, Tesla’s energy department seems to be working in a positive manner and analysts have emerged to be quite bullish about the future it could bring to the company. By the year 2016, the luxury car makers could actually result in making a revenue growth that leaves all of the analysts and investors in surprise. 

Tesla stock was up 0.78% to $211.72 at market close on Thursday October 22.