Tesla CEO Elon Musk will probably cover a wide range of important topics despite of spending more than twice as long as most other CEO’s fielding questions during earnings calls.
Here are some of the topics to listen for:
- Energy storage
During the Tesla Energy launch event, Musk said it will begin sales of its Powerwall and Powerpacks this year, but he warned that the ramp-up in production will be slow. Next year — this time i.e. 2016 — however, Musk said the ramp-up will be much, much higher.
- Model S demand
In its 4Q letter to shareholders, Tesla said it entered the year with over 10,000 orders for Model S. Since then, the company hasn’t given a specific number for orders but has continued to insist demand is not a problem. The carmaker’s decision to launch a US$ 2,000 referral program last month could suggest that demand growth for Model S is tapering off.
While some cannibalization of Model S sales is inevitable, investors are hoping current Q volume of Model S sales can remain mostly uninhibited, or even continue to grow. At 95% of the company’s revenue, and boasting gross profit margins above 25%, new Model S sales are crucial to the company’s business.
“The 3Q letter to shareholders last year that he expected Model S sales to grow 50% in year 2015 and probably for several years to follow.” – CEO Elon Musk
That can be well considering for annual Model S sales growth increased 50% in both Q1 and Q2.
But with a Model X launch around the corner, will the bullish outlook be handled by CEO?