Tesla reported a fourth-quarter earnings loss on Wednesday, with revenues below expectations.
The electric-car manufacturer posted an adjusted loss per share of $0.87 in its 11th-straight quarterly decline. Revenues totaled $1.75 billion.
Tesla had been expected to post adjusted earnings per share (EPS) of $0.10, with revenues of $1.81 billion, according to analyst estimates on Bloomberg.
Still, shares rose by as much as 10% in after-hours trading, as the company’s projections for deliveries topped estimates.
Tesla projected that it will deliver 80,000 to 90,000 Model S and Model X vehicles this year, beating the forecast for 76,200. The forecast for 16,000 deliveries in the first quarter also topped the average of five estimates gathered by Bloomberg (15,200).
The company will unveil the Model 3 on March 31 and launch it in 2017.
“We expect to generate positive net cash flow and achieve non-GAAP profitability for the full-year 2016,” the earnings statement said.
Shares had fallen about 34% over the past year, and 40% year-to-date ahead of earnings.
Analysts were concerned about production delays on new models, the company’s ability to hit its production targets, and whether consumers will buy the pricey cars.
Morgan Stanley’s Adam Jonas, one of the most bullish analysts on the company, cut his price target on Tesla’s stock last week by 26% to $333, writing that his expectations for the Model X SUV and Model 3 volumes had fallen.
In all, it’s been a painful year for CEO Elon Musk’s companies, as Business Insider’s Linette Lopez noted. Shares of Solar City, the residential powers company he founded, tanked as much as 28% on Wednesday after the company missed on earnings.
Here’s the jump in shares in after-hours trading: