Tesla Soars Above Analysts’ Estimates in Q4 Report

On Wednesday Tesla Inc. (TSLA) reported its fourth quarter results ended December 31, 2019. As per the results Tesla performed way better than what analysts had predicted making it the second consecutive quarter Tesla is soaring above analysts’ estimates.

Tesla has now managed to post four profitable quarters in its last six quarters.

In the fourth quarter Tesla reported adjusted earnings per share of $2.14 which was higher than the expected $1.74.

Revenue in the quarter stood at $7. 38 billion also higher than the expected $7.06 billion, this was also higher than the $7.23 billion reported by the company in its fourth quarter last year.

Moments after posting the results shares of the electric car maker spiked by over 14% breaking the $600 mark for the first time ever. The share closed at $580.99 per share on Wednesday, however during the after-hours the stock rallied to a record high of $660.

In the fourth quarter revenue per delivered unit increased by 3% while operating profits per vehicle increased by almost 19%.

The company also delivered 112,000 vehicles in the fourth quarter bringing the total number of vehicles it delivered in 2019 to 367,500. Additionally, the company said it intends to deliver more than 500, 000 units in 2020.

Tesla advised customers who had ordered the Shanghai built Model-3 to expect a delay in delivery of about one to two weeks saying it had resulted to shutting down operations at the plant due to emergence of the Coronavirus which has claimed about 170 lives in China so far.

Chief financial officer of Tesla, Zachary Kirkhorn, hinted this temporary shutdown of the Shanghai factory might affect earnings in the current quarter.

“This may slightly impact profitability for the quarter but is limited as the profit contribution from Model 3 Shanghai remains in the early stages,” said the CFO.