Tesla's Earnings Reports Are Positive, But Below Expectations

  Tesla 4Q earnings: Tesla broke quarterly revenue record, but profit does not meet expectations Tesla (TSLA) reported its fourth quarter results after Wednesday's market close. A final look at the electric car manufacturer's performance at the end of a record-breaking year gives us an early guide to 2021. The company reported for the first time that it generated more than $ 10 billion in revenue in a quarter. Tesla's earnings were below estimates, but the company also reports six quarters of profit. Following the results, stocks fell more than 4 percent in late trading hours.

Tesla announced earnings per share of $0.80 billion and revenue of $10.74 billion, compared to estimates of $1.03 billion earnings per share and $10.38 billion in revenue.

Tesla announced a record vehicle delivery in 2020, aided by the production increase of its Gigafactory being built in Shanghai. The company, which laid the foundations for soon to be opened facilities in Germany and Texas, joined the S&P 500 after months of speculation.

Tesla stock has increased by more than 740 percent in 2020, while it has already gained 23 percent in 2021.

Tesla presented the roadmap for vehicle deliveries in a letter to shareholders Wednesday. The company said, “We are planning to increase our production capacity as soon as possible. In our vision spanning years, we aim to grow by an average of 50 percent annually in terms of vehicle deliveries." "Some years we will grow at a rate above the standard. We expect 2021 to be such a year" Tesla closed the year 2020 with more than 499,550 vehicles delivered. This was just under the half-million mark that many analysts on Wall Street have cited as a target. Nevertheless, Tesla's deliveries increased by 36 percent compared to 367,500 deliveries in 2019. During the coronavirus pandemic, Tesla increased at a time when large and established automakers such as Ford (F), General Motors (GM) and Fiat Chrysler (FCAU) reported a year-round decline in car sales. Production outside of China is at the center of Tesla's current performance. In 2020, Tesla increased its Model 3 production to more than 5,000 per week at the Shanghai Gigafactory. In addition, the production of new Model Y vehicles was put into operation in the same factory. Wedbush's analyst Dan Ives used the metaphor of "the heart and lungs of the Tesla bull," referring to the company's business in China, in a note he shared before the results were released. He predicts that at least 40 percent of Tesla's total deliveries could arrive from China by 2022. While Tesla does not sell or deliver by region, it has highlighted the sharp growth in sales from Chinese electric vehicle manufacturers such as Nio (NIO) Li Auto (LI) and Xpeng (XPEV), and recently increased demand in the world's largest electric vehicle market. In the US, the Biden administration is fueling hopes for appropriate policies that can help increase demand for clean energy companies and electric car manufacturers such as Tesla. Tesla also added that it is continuing to start vehicle production this year with the batteries it designed for use in its own vehicles at its Berlin and Austin facilities. Production at these facilities includes Model Y, and the company also plans to begin deliveries of Tesla Semi in 2021. Tesla in its shareholder letter said, “Our total market share in Europe increased in 2020. Also, the active presence of Gigafactory Berlin and Gigafactory Shanghai will result in a noticeable increase in local deliveries. The construction of our Berlin factory continues as planned."   Tesla's Earnings Reports Are Positive, But Below Expectations Source: https://finance.yahoo.com/ You may also be interested in this:

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