Has Tesla Reached Limits of the Millionaire Market?

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May 7 (Bloomberg) -- Tesla Motors fell after the electric-car maker reported first-quarter Model S sales growth that was below top-of-the-range analyst expectations. Cory Johnson breaks down the numbers on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Are they producing enough tesla to warrant the earnings per share beat?

There are adjusted number makes it looks as if they did not lose money but they lost money.

Are they producing enough?

More than enough.

It appears the backlog that was once as high as 15,000 is now gone because they made 7500 cars during the quarter but only said -- only sold 6800. what we saw was a decline in sales on a quarter over quarter basis.

For the first quarter ever, they sold fewer than previous quarters.

What are the estimates for future production?

An increase of anywhere from 13-15%? will they be able to pull that off?

Making them and selling them are two different things.

They say they will make more but right now doesn't appear making them is the problem selling them is the problem.

Starting to see the limits.

A lot of excitement about potential places like china.

Talking about it quite a bit in the press release.

We will see what the results are.

Fundamentally is a neat old clark, an electric car that happens to cost $120,000. -- neat ole' car.

It is a car for millionaires and there are only so many million or someone to buy the car and one of the issues they are starting to bump up against.

They do not have any new context on the market.

No notion what the pricing will be.

Spring 2015 for the next vehicle.

I do not know if this wednesdays long, but sales are down for a number of sales -- cars and the stock is down as well.

The stock down about seven percent in after-hours trading.

How is there such a large discrepancy between the adjusted earnings and unadjusted earnings?

They put a lot of stock into the stock composition.

They come those by reducing or adding costs to reduce operating profits.

There is a lot of mathematics that go into this.

The thing i am trying to figure out, and i have spent not a little bit time is understanding the difference between the leased vehicles.

The they sell there is no deal will -- be -- no dealer involved.

Arjun's or higher.

If you take out the dealer expense, they have a higher sales cost and administrative costs because they do not have a dealer.

The cost went through the roof this quarter.

40 million a year ago to over 100 million in the most recent quarter.

I do not know if it is about operating more dealers or more operating costs, who knows?

Also a bigger loss for the company.

A bigger loss they've had since the first model as it started rolling out.

-- model s's started rolling

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

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