Tesla sinks as it continues to burn through cash

Shares of Tesla are down 4.5% at $US261.27 per share following Wednesday’s earnings report.

The electric car maker announced an adjusted loss of $US0.69 per share on revenue of $US2.28 billion. Those numbers were both better than Wall Street expectations of a $US1.04 loss on revenue of $US2.13 billion. However, those analyst expectations might not have factored in the impact of SolarCity, which Tesla acquired in November.

Additionally, the company continued to burn through cash, losing $US448 million from operating activities in the fourth quarter.

Tesla’s guidance was lukewarm and ambiguous, saying it would deliver between 47,000 and 50,000 Model X vehicles in the first half of the year. It didn’t give guidance for the full year.

Thursday’s slide is a welcome sign for short sellers in the stock who have been getting steamrolled as of late. They had lost more than $US2.3 billion betting against the stock as it continued to rip higher at the start of 2017.


Visit Markets Insider for constantly updated market quotes for individual stocks, ETFs, indices, commodities and currencies traded around the world. Go Now!

NOW WATCH: What happens to your brain and body if you use Adderall recreationally