By Rob Wile From Business Insider

Tesla reported adjusted earnings of $0.11 a share, beating Bloomberg’s consensus for earnings of $0.04 a share and loss of $0.26 a year ago.

Revenue came in at $857.5 million, versus a consensus estimate for $813 million.

Shares saw volatile trading after-hours, with the stock climbing and falling as much as 2%.

Here’s the link to the Q2 shareholder letter: http://files.shareholder.com/downloads/ABEA-4CW8X0/3363675120x0x772849/0cdad2cf-0497-41a3-ad2a-788f57412777/Tesla%20Q2’14%20Shareholder%20Letter.pdf

On a GAAP basis, Tesla reported a loss of $62 million. Tesla relies heavily on non-GAAP results.

Tesla delivered 7,579 vehicles in Q2, besting Barclays’ forecast for 7,546 units and Tesla’s own forecast for 7,500 units.

However, Tesla now sees Q3 deliveries at 9,000 vehicles, which is slightly below Barclays’ estimate of 9,200-9,700 vehicles.

Tesla still says they will deliver 35,000 vehicles for 2014. Last year they delivered about 22,450. So, they’re holding to a 56% growth forecast. And it now forecasts 100,000 deliveries on an annualized basis for 2015.

“While guiding to a below-consensus 3Q’14 on deliveries and earnings, Tesla gave bullish guidance for 2014 and 2015 that should support the shares – guiding to a 4Q delivery rate of over 13,000 units and an exit rate of 100k units in 2015,” Barclays said. “The guidance provides us some insight into Tesla’s expectations for a quite steep delivery ramp-up over the coming years and into the Model 3 era.”

The Palo Alto-based company confirmed they had broken ground in Reno as a potential site for its Gigafactory, a manufacturing plant that Tesla hopes will double the world’s volume of lithium ion batteries by 2020. Earlier today, Tesla and Panasonic confirmed media reports that they’d signed a deal to furnish the factory. In its shareholder letter the firm said additional partners for other parts of Tesla’s battery pack would be announced in the coming months.

The firm now says it will spend close to $1 billion in 2014. They ended the quarter with $2.7 billion cash reserves. They’re seeing a gross margin of about 27%.

“We continue to invest in additional production capacity, continued Model X and Model S development, Gigafactory construction, and further expansion of our sales, service, and Supercharger footprints,” they said. “We have also chosen to slightly accelerate our investments in production capacity and the Gigafactory.”

They also confirmed they have a powertrain delivery deal with Daimler for the Mercedes-Benz B Class EV.

This is just the 17th quarterly report in the Palo Alto-based firm’s history, but few companies’ reports are as closely watched. Some have made the case that the entire electric vehicle industry, not to mention the future of solar rooftops, depend on Tesla’s success.

Morgan Stanley’s Adam Jonas, a Tesla bull, released a note yesterday arguing investors should prepare for a miss on some items, but should nonetheless “prepare to buy the dips.”

We’re prepared for a weakish 3Q volume guide. Extensive retooling/reconfiguration of the Fremont plant in preparation of higher volume and Model X could create short-term supply constraints that Tesla may want to telegraph into the 3Q volume outlook. While still possible to reiterate its FY14 outlook of 35k units, we believe this will be heavily dependent on a 4Q catch-up. We’re at 9,350 Model S in 3Q (vs. 7,725 in 2Q) but are prepared for a number well below 9k.

Barclays also cautioned delivery guidance could disappoint, but that “momentum still exists in the name in the near-term, driven by positive datapoints around China and Model X.”

Shares were down 2% into Thursday’s close.

IMAGE: Elon Musk in 2009. Tesla has come a long way. REUTERS/Fred Prouser

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