- Tesla reported quarterly earnings after the closing bell on Wednesday. The electric-car maker fell short of analysts’ earnings expectations, but beat on revenue.
- The company said it plans to produce its Model 3 “at maximum production rates” this year.
- CEO Elon Musk warned investors and employees two weeks ago that pressure to achieve a profit and make the Model 3 more affordable led to more than 3,000 job cuts at the company.
- Shares of Tesla fell 2% in after-hours trading.
- Watch Tesla trade live.
Tesla shares fell in after-hours trading Wednesday after the company reported fourth-quarter profits that fell short of analysts’ expectations. The results came nearly nearly two weeks after the electric-car maker warned the pressure to achieve a profit and make the Model 3 more affordable led to more than 3,000 job cuts.
Here’s what Tesla reported and how it compared with analysts’ expectations:
- Fourth-quarter revenue: $7.23 billion (Wall Street expected $7.1 billion, prior quarter $6.8 billion)
- Adjusted fourth-quarter earnings per share: $1.93 (Wall Street expected $2.10, prior quarter $2.90)
The company said it would “continue to produce Model 3 vehicles at maximum production rates throughout 2019.” Tesla also said that while its “delivery and logistics systems continued to progress” in the fourth-quarter, there remained “room for more improvement.”
In the fourth-quarter, Tesla said it delivered 63,359 Model 3 vehicles to customers in North America, and this month began producing Model 3 vehicles for Europe and China. Both markets are considered important growth opportunities for the company. Additionally, Tesla said it delivered 27,607 Model S and Model X vehicles to customers in the fourth-quarter.
Elon Musk, the company’s CEO, said earlier this month that the company was targeting a small profit this quarter.
“This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit,” he wrote in a letter to employees.
Bullish Tesla analyst Colin Rusch of Oppenheimer told clients Monday that “Model 3 demand, production, and margin” will be the primary drivers of the stock this year.
The past year has been a volatile one for the company, marked by Musk’s “funding secured” tweet last summer, in which he expressed a desire to take Tesla private. He later settled fraud charges with the Securities and Exchange Commission. In Musk’s letter earlier this month, he called last year “the most challenging in Tesla’s history.”
Since reaching a record high of $387.46 last August, Tesla shares have fallen by 21%.
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