Is Tesla's Record Quarter Setting Up For a Record Year?

Cars and Drivers

Published: January 29, 2020 4:36 pm

Tesla, Inc. (NASDAQ: TSLA) reported its most recent quarterly results after the closing bell on Wednesday. The electric vehicle (EV) giant said that it had $2.14 in earnings per share (EPS) and $7.38 billion in revenue, compared with consensus estimates that called for $1.72 in EPS and $7.02 billion in revenue. The fourth quarter from last year had $1.93 in EPS and $7.23 billion in revenue.

For the quarter, automotive sales increased 1% year over year to $6.37 billion, with a gross margin of 22.5%. Tesla reported record deliveries of 112,095 in the fourth quarter.

Separately, the company reported record storage deployment of 530 MWh and 26% solar growth quarter over quarter.

Looking ahead to the 2020 full year, the company said that it should comfortably exceed 500,000 in deliveries. This is due to the ramp-up of Model 3 in Shanghai and Model Y in Fremont. Tesla further believes that production will likely outpace deliveries this year. Both solar and storage deployments should grow at least 50% in 2020.

Management said that it expects positive GAAP net income going forward, with possible temporary exceptions, particularly around the launch and ramp of new products. Consensus estimates are calling for $6.01 in EPS and $30.6 billion in revenue for the full year.

Elon Musk, Chairman, Founder, and CEO, commented:

For most of 2019, nearly all orders came from new buyers that did not hold a prior reservation, demonstrating significant reach beyond those who showed early interest. Amazingly, this was accomplished without any spend on advertising. As more people drive our cars and as the industry rapidly validates electrification, interest in our products will continue to grow

Shares of Tesla closed Wednesday at $580.99, in a 52-week range of $176.99 to $594.50. The consensus price target is $368.35. Following the announcement, the stock was up about 7% at $623.10 in the after-hours trading session.

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