Tesla Earnings, Revenue Beat Handily in Q4; Shares Pop

Investing.com – Tesla reported on Wednesday fourth-quarter that beat analysts’ forecasts and revenue that topped expectations.

Tesla (NASDAQ:) announced earnings per share of $2.14 on revenue of $7.38 billion. Analysts polled by Investing.com anticipated EPS of $1.64 on revenue of $6.95 billion.

That compares to EPS of $1.93 on revenue of $7.23 billion in the same period a year before. Tesla had reported EPS of $1.86 on revenue of $6.3 billion in the previous quarter.

Analysts are expecting EPS of $0.82 and revenue of $6.63 billion in the upcoming quarter.

Shares rose 6.75% in after-hours trading.

“Tesla is back on track after ramping up its production and building a factory in China that could prove a game-changer for the company’s long-term profitability,” Investing.com analyst Haris Anwar said.

“In order to solidify its position, Tesla must show in the next few quarters that it can translate all these gains into generating consistent, free cash flow and start cutting its debt,” Anwar said.

The company said deliveries in 2020 should “comfortably exceed” 500,000 units, which is higher than estimates of around 475,000. Production will likely outpace deliveries this year.

Production of the Model Y crossover utility vehicle in the Fremont plant has begun and is ahead of schedule, Tesla said.

One concern may be that auto gross margin fell 30 basis points quarter over quarter to 22.5%.

Tesla shares are up 38% from the beginning of the year and are trading at $590.00, still down 2.29% from its 52-week high of $594.50 set on Jan. 22. They are outperforming the , which is up 2.61% year to date.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar

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