Tesla (NASDAQ: TSLA) shares jumped 12% after hours after the company posted better than expected fourth quarter earnings results.
Tesla (TSLA) reported adjusted earnings of $2.14 per share on revenue of $7.4 billion, vs. consensus of $1.77 per share. Revenue was up 2% year over year. The company explained that revenue growth was attributed to a strong demand in vehicle deliveries, model 3 mass market adoption.
Cash and cash equivalents increase by $930 million to $6.3 billion. This was driven by positive operating free cash flow of $1.0 billion.
- Model Y production started in January 2020, Ahead of schedule
- Increased Model Y all-wheel drive EPA range to 315 miles (From 280 Miles)
- Record vehicle deliveries of 112,095 in Q4
- Record Q4 storage deployment of 530 MWh: 26% Solar Growth quarter over quarter
Tesla (TSLA) said they expect positive cash flow quarter over quarter going forward (With possible temporary exceptions). The company said in a statement, ”We continue to believe our business has grown to the point of being self-funded.”
Tesla delivered 367,500 vehicles in 2019, up 50% year over year. The company believes they will ”comfortably exceed” its 500,000 units delivered target in 2020. Production ramp of Model Y in Fremont remains ahead of schedule. Model 3 production in Shanghai is continuing to ramp while Model Y production in Shanghai will begin in 2021.
The stock has more than doubled over the last 8 months, far outpacing the performance of the Dow, S&P 500 and Nasdaq. This has pushed the electric car makers valuation well above the $100 billion mark. Tesla short sellers have lost over $3 billion since the start of 2020 as the stock continues to move higher. Telsa’s production and delivery outlook for 2020 is very optimistic. This may lead the company on a consistent path to profitability quarter over quarter in 2020.
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