Tesla reported Wednesday a profit of $139 million, or $0.78 a share, and better-than-expected sales, yet failed to meet analysts’ expectations for earnings in the fourth quarter. Shares fell after the markets closed and are down 1.7 percent as of 2:30 pm PT.
Tesla has managed to string together two profitable periods in a row thanks to sales of the Model 3 and despite several headwinds in the fourth quarter, including a non-cash charge of $54 million attributable to non-controlling interests, higher import duties on components from China, a price reduction for Model S and Model X in China and the introduction of a lower-priced mid-range version of Model 3.
In October, Tesla reported its first profit after seven consecutive quarters of losses. It was only the third time in its history that it had achieved this milestone.
Tesla’s profitable fourth quarter lies in stark contrast to its financial position in the same period last year when it reported a loss of $675 million, or $1.75 a share.
Perhaps just as important as the automaker’s income is its cash position. Tesla reported that its cash position improved by $1.45 billion despite the scheduled repayment of a $230 million convertible bond in the fourth quarter.
“We have sufficient cash on hand to comfortably settle in cash our convertible bond that will mature in March 2019,” the shareholder letter to investors said.
Here are a few of the highlights:
- Tesla’s Q4 revenues were $7.2 billion, up from $6.8 billion in the third quarter
- Tesla’s Q4 operating cash flow less capital expenditures improved to $910 million
- Cash and cash equivalents increased by $718 million to hit $3.7 billion at the end of the fourth quarter
- Model 3 production volumes in Fremont should reach a sustained rate of 7,000 units per week by end of 2019
Analysts took a measured tone in reaction to Tesla’s fourth-quarter earnings report, noting the company’s accomplishments as well as the challenges that lie ahead.
The challenges will be for Tesla to improve, or at least maintain, margins even as the federal tax credit continues to wind down.
Tesla is forecasting that Model 3 volumes will “grow substantially” in 2019 due to a full year of high production rates at its facility in Fremont, California.
Tesla said it plans to start producing Model 3 vehicles at its “gigafactory” in Shanghai by the end of the year. The automaker says they intend to slash the cost of producing Model 3s at the factory in China, a bold prediction that if successful will help boost margins.
“We expect the capital spend per unit of capacity for this factory to be less than half of that of our Model 3 line in Fremont,” the company said.
Tesla is also targeting cost reductions in the U.S and expects operating expenses will grow by less than 10 percent in 2019. The automaker says that restructuring actions taken in the first quarter — which includes layoffs that occurred this month — will reduce costs by about $400 million annually.
Tesla’s first-quarter financials will reflect a one-time restructuring cost, the company forecasted.
As a result, Tesla says it’s remaining optimistic that it will post a small profit in the first quarter if it can successfully keep costs down and handle logistics and delivery challenges in Europe and China.
Tesla reported January 2 that it delivered 90,700 vehicles during the fourth quarter, just shy of what analysts expected. The company said at the time that it delivered 13,500 Model S sedans, 14,050 Model X SUVs and 63,150 Model 3s.
- Tesla battery supplier LG Chem shares jump 10% on upbeat outlook
- Elon Musk becomes world's fourth richest man on Tesla boom
- Electric vehicle makers find a back door to Wall Street
- 2020 is turning out to be the 'best' year for Elon Musk
- Exclusive: GM bets on electric Cadillacs and micro-vans to reverse China slide
- What is Tencent?
- AutoNation names new CEO as slowing auto sales hit results
- U.S. EV startup Canoo to go public at $2.4 billion valuation
|Trailing Exits: Using Average True Range to Set Profit Targets$28.84||Methods to Predict & Profit in Any Market Cycle (DVD)1.0★ / check it now at Amazon||1999 to 2009 Statehood Quarter Map and 56pc. Philadelphia Mintmarked Quarter Collection5.0★ / check it now at Amazon||LightUp Tesla Kit - Learn to program$34.5||The Colbert Report: March to Keep Fear Alive Pennant check it now at Amazon||Pocket Guide - Weather Forecasting - Weather Reports - Guide to Weather Forecasting - Ron Codres4.0★ / $12.99||Combative Pistol: Jim Grover's Guide To Extreme Close-Quarters Shooting [VHS] check it now at Amazon||Solid Steel Grooved Ring Mandrel Ring Sizer 1 to 15 by Quarters check it now at Amazon||HDE 3.5mm Stereo Jack to 1/4" Quarter Inch Plug Adapter Audio Converter check it now at Amazon||Keyword Optimization - Complete Guide to Choosing Profitable Keywords for Your Website check it now at Amazon||Get Paid For Your Pad: How to Maximize Profit From Your Airbnb Listing$14.39||From Big Data to Big Profits: Success with Data and Analytics$45.06||Writing Riches: Learn How to Boost Profits, Drive Sales and Master Your Financial Destiny With Results-Based Web Copy$8.67||Bartending Inside-Out: The Guide to Profession, Profit & Fun check it now at Amazon||Profit in Plain Sight: The Proven Leadership Path to Unlock Profit, Passion, and Growth check it now at Amazon||The New Sell and Sell Short: How To Take Profits, Cut Losses, and Benefit From Price Declines$32.55||Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits (Wiley Trading) check it now at Amazon||Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits check it now at Amazon||How To Beat The Stock Market With Powerful Stock Picking Secrets Of Champions: Discover How To Pick Profitable Stocks check it now at Amazon||Profit in Plain Sight: The Five Principled Paths to Passion, Profit and Growth$33.32||A Collection of Letters to Nuns: Profitable Instructions for Laymen and Monastics$15.96||The Report Back in Time check it now at Amazon||Optimizing Back Office Operations: Best Practices to Maximize Profitability check it now at Amazon||Reporting Back: Notes on Journalism$24.95||Special Report: How to Bundle Products Together on Amazon for More Profits check it now at Amazon||The Short Report: How to Sell Stocks Short For Large Fast And Easy Profits! check it now at Amazon||Marc New York Performance Women's Woven Back Three Quarter Sleeve Top check it now at Amazon||WIIPU Women Bow Back Three Quarter Lantern Sleeve Casual Chiffon Blouse(J2-24) check it now at Amazon||Tesla Coil Back Print T-shirt/tee check it now at Amazon||Womens Back Court Quarter Crew Socks check it now at Amazon|
Tesla reports back-to-back profitable quarters have 1247 words, post on techcrunch.com at January 30, 2019. This is cached page on USA Posts. If you want remove this page, please contact us.