Why Has Tesla Increased 3.1% Since the Last Earnings Report?

Why Has Tesla Increased 3.1% Since the Last Earnings Report?

A month has passed since Tesla (TSLA) since the last earnings report. Stocks that performed less than S&P 500 rose by around 3.1% during this period. Will the recent positive trend continue the next earnings release or should Tesla retreat? Before we look at how investors and analysts have reacted recently, let's take a quick look at the latest shared earnings report to better address key drivers. Earnings Report Tesla reported that the 20 cents loss was $ 1.24 per share in the first quarter of 2020 against the Zacks Consensus Prediction. This performance resulted from higher than expected automotive revenues, exceeding the $ 5.13 billion and $ 4.47 billion consensus. In the quarter reported, net income from the shareholders was $ 16 million, compared with net loss of $ 702 million in the previous quarter. Revenues increased from $ 4.54 billion in the first quarter of 2019 to $ 5.98 billion. It also surpassed the Zacks Consensus Prediction, with revenue of $ 5.37 billion. In the first quarter, Tesla increased the delivery and production of 88,496 and 102,672 vehicles by 33% and 40% compared to the previous year.

Financial Position

Tesla's cash and cash equivalents, which were $ 6.3 billion as of March 31, 2020, became $ 6.3 billion as of December 31, 2019. This increase stemmed mainly from the $ 2.3 billion capital increase. Net cash used in business operations amounted to $ 440 million in the first quarter of 2020, compared with net cash of $ 640 million used in the first quarter of 2019. Capital spending rose from $ 280 million to $ 455 million due to investments in Gigafactory Shanghai and Model Y preparations in Fremont.

Outlook

Tesla strives to improve vehicle deliveries in order and annually, with some seasonal fluctuations. Throughout 2020, the company expects vehicle deliveries to exceed 500,000 units. In the midst of coronavirus-related setbacks, however, Tesla refrained from providing any profit or cash flow forecast. The EV manufacturer is considering accelerating Model 3 production in Shanghai and Model Y in Fremont in the second quarter of 2020 and starting delivery from both locations by 2021.