Musk not anxious about Tesla Model 3 demand, but Wall Street is

Adjust Comment Print

Earnings, adjusted for stock option expense, were $1.93 per share.

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.

In the earnings call which Musk discussed prior to announcing Ahuja's departure, Tesla reported its second consecutive quarterly profit ever.

Tesla rattled investors on Wednesday by reporting profit that fell short of expectations and revealing that its chief financial officer is leaving - the latest senior executive to exit the electric auto company. Tesla also said that while its "delivery and logistics systems continued to progress" in the fourth-quarter, there remained "room for more improvement". Revenues generated in Q4 amounted to $7.23 billion against average estimates of $7.08 billion.

More news: January 30 is Bell Let's Talk Day

Tesla also said its optimistic target was to achieve a very small GAAP net income in the first quarter.

In the fiscal fourth quarter, the company's free cash flows increased to $910 million, better than the $881 million it had posted in the third quarter.

Since reaching a record high of $387.46 last August, Tesla shares have fallen by 21%.

If Musk is right, the success of the Model Y will represent a successful next stage for the EV maker, which still has its sights set quite firmly on its goal of upturning the automotive world to reduce carbon emission levels irrevocably.

More news: Ariana Grande Tries And Fails To Fix Botched Japanese Tattoo

Earlier this month, Tesla said it would stop making Model S and Model X vehicles with a 75 kWh battery pack, which had starting prices of $76,000 and $82,000, respectively - thereby setting new prices at the time at less-accessible $94,000 and $97,000 entry points.

One of Tesla's big problems was the months-long struggle to ramp up production of its Model 3 sedan.

Revenue beat expectations, at $7.23 billion, but the shares still slipped 1.1 per cent, or $3.27, to $305.50 in after-hours trading, reflecting investors' disappointment with the results. Both markets are considered important growth opportunities for the company. The company also projected it would be producing 7,000 Model 3s a week by the end of 2019, up from the current 5,000. It expects to deliver between 360,000 to 400,000 vehicles in 2019, an increase of as much as 65 percent when compared with a year ago.

"As we continue to improve the production rate of Model 3, the cost per vehicle continues to decline". This projection is slightly behind schedule when compared to Musk's previous commentary in mid-2017, when he had asserted that investors should have "zero" doubt that Model 3 production would hit 10,000 per week in 2018.

More news: Rand Paul awarded more than $580K after neighbor's attack

It may be similar to the Model 3, but Musk said to expect 50 percent higher cost - even double.

Comments