What to Watch Ahead of Tesla Motors Inc (TSLA)’s Second-Quarter Earnings

Tesla Motors Inc (NASDAQ:TSLA) is one of the best-performing stocks this year, having so far gained more than 221% year to date. However, that can be a crushing figure if you missed the opportunity earlier this year to get in on the stock. Fortunately, you may have another chance to scoop up shares. With the electric-car maker set to report earnings after the bell on Aug. 7, there’s a lot of pressure on the stock. Let’s take a closer look at what analysts are expecting ahead of Tesla Motors Inc (NASDAQ:TSLA)’s second-quarter report, and whether the company will live up to expectations.

Buckle up; It’s going to be a bumpy ride
If you were lucky enough to pick up shares of Tesla Motors Inc (NASDAQ:TSLA) at the peak of this week’s sell-off, kudos to you. The stock has since rebounded more than 10% to where it’s currently trading around $119 per share. However, if you missed out, don’t be too hard on yourself. There may be another buying opportunity after the stock reports its Q2 results in.

The EV maker kicked off fiscal 2013 by posting its first profitable quarter as a public company. For its first quarter ended March 31, Tesla Motors Inc (NASDAQ:TSLA) earned $0.12 per share on revenue of $561.8 million. Better still, since Tesla reported those impressive results on May 8, the stock has climbed from $55 a share to an all-time high of $133.

So what?

Well, for one thing, investors shouldn’t expect the same caliber of results for the company’s upcoming quarter. For Tesla’s second quarter, you can bet the EV maker won’t be touting profitability. In fact, Tesla will probably post a net loss because of its new lease-financing plan. To be fair, Tesla Motors Inc (NASDAQ:TSLA)’s CEO Elon Musk warned analysts about this back in May on the Q1 conference call. Still, I wouldn’t be surprised if the stock were to move on the news.

Ultimately, Musk believes the impact of this lease accounting on Tesla will be a positive for the company — and why wouldn’t it be? After all, it means Tesla is selling more cars through its new financing program. Moreover, we can also expect operating costs to have swelled in the second quarter because of Tesla’s buildout of its Supercharger Network, as well as opening new retail locations . Nevertheless, the company hopes to be around breakeven on cash flow from operations despite these and other ongoing investments. In total, Tesla plans to spend around $200 million this year on capital expenditures.