Did Earnings Report Show Tesla Is on Track?

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July 31 (Bloomberg) -- S&P Capital IQ's Efraim Levy and Unit Economics CEO Nathan Weiss comment on Tesla Motors' second-quarter earnings. They speak with Cory Johnson on "Taking Stock." (Source: Bloomberg)

Ceo of weiss harrington & associates, nathan weiss, and also efraim levi, from the s&p. i was closer than other analysts, but the deliveries were slightly above expectations, generally in line.

Good news -- they announced it.

I would still like more details on that.

China is at the early stages of growth.

I think that's going to be an important area of growth.

Basically steady as she goes that they are executing on the plan.

What did you think?

Fairly solid quarter.

They beat expectations to a wild agree -- wild degree.

Tesla is maintaining a 35,000 unit full-year delivery, so pushing 14,000 potential deliveries to make the numbers.

Any news about model x? model whatever?

They have not said a whole lot about that yet, but they seem to be on plan.

They are making the investments.

Until we see actual deliveries, it's not there.

Again, as i indicated before, they are generally executing, so i give them the benefit of the doubt in that area.

Let me ask you about this -- there was a sentence in the press release that jumped out at me because there's all this excitement about the gigafactory -- which is so much better than a factory, like a hyperloop -- it has more loop.

April around in reno for a potential site.

What does that mean?

If you look in the forums, people have gone and taken pictures.

They have started flattening things.

They have a permit to do so.

They broke ground.

But it is a potential site.

So even though it has the construction equipment, this might not be the site?

Reportedly, they are still pushing to get california.

They just have not gotten the environmental permits.

At least they got bulldozers pushing around some dirt.

How important is a gigafactory or even just a factory to tesla's and medium -- tesla's immediate success?

It is important to get more fuel cells from suppliers so they do not have backlogs or interruptions that they cannot produce enough vehicles to meet their backlogs.

Let me challenge you with that -- they made more cars this quarter than they needed to make.

Production was nearly 1000 more than they made this quarter, and there is no backlog anymore.

According to the press release, it seems to be indicating the backlog is growing.

They also have a slowing down of the next quarter of how many they are going to produce, they have to produce ahead, but they also have to ship it.

There's the difference between shipping and delivering, and there's only so many they can produce at one time.

If they want to expand in china, that means they may have to cut back in markets such as the u.s. do you see backlog?

If you parse the statement, sequential orders were up, and we track the time from order confirmation, which is usually 24 hours after placing an order to the start of production.

That went from 71 days to 30

This text has been automatically generated. It may not be 100% accurate.

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