Posted on 01/29/2020 3:17:30 PM PST by Moonman62
Tesla’s (NASDAQ:TSLA) fourth-quarter earnings for 2019 saw the electric car maker post $7.38 billion in revenue, exceeding estimates from Wall Street. The results, which were discussed at length in an Update Letter, were released after the closing bell on Wednesday, January 29.
Tesla entered and ended the fourth quarter on a high note. Propelled by a surprise profit in the third quarter, TSLA shares experienced a radical rise that has continued until today. The company also delivered 112,000 vehicles over Q4 2019, while producing 104,000, setting new records once more.
The following are the key points in Tesla’s Q4 2019 and Full Year Update Letter.
REVENUE
Tesla reported revenue of $7.38 billion for the fourth quarter. In contrast, Wall St. expected Tesla to report revenue of $7.047 billion. Estimize expected Tesla to report revenue of $7.158 billion.
EARNINGS
Tesla shareholders saw earnings per share of $2.14 in the fourth quarter, beating Wall St’s estimates. In comparison, Wall Street expected Tesla to report a gain of $1.62 per share for Q4 2019. Estimize, a crowdsourcing platform that aggregates estimates from Wall Street analysts, buy-side analysts, company executives, academics, fund managers, among others, expected gains of $1.79 per share.
FREE CASH FLOW
Tesla notes that 2019 was a huge turning point for the company. Thanks to consistent, strong demand for the Model 3, Tesla returned to GAAP profitability in the second half of the year, generating $1.1 billion of free cash flow for the year. The company also credits cost control across the board for its strong cash generation.
DEMAND SUSTAINABILITY
Over the course of 2019, Tesla notes that most of the orders for its vehicles were from new buyers who did not hold a previous reservation with the company. This showed that the company’s reach is growing, and it was able to do so without spending on advertising.
TSLA STOCK SO FAR
Tesla shareholders have received the electric car maker’s results positively. As of writing, Tesla shares are trading +6.64% at $619.57 per share during after-hours trading.
Yep, +67 after hours!! (+14% for the day!)
Elon is firing on all cylinders!
SpaceX had another successful Starlink launch today, too.
They’ll be averaging around three launches a month this year.
Tesla will have another big factory opened in Europe in a little over a year.
The Model Y will start deliveries in March with a top range of 315 miles.
We would all buy more new cars if the feds gave us $7500 towards the purchase.
Market value greater than Ford & GM combined, STILL without a profitable year.
Insanity.
As you can see here, only Tesla and GM have sold enough plug-in vehicles for the credits to start phasing out. For Tesla, the phase out started on January 1, 2019. That’s when the $7,500 credit was cut in half to $3,750, and it stayed there until June 30. For the second half of 2019, the tax credits for Tesla EVs were just $1,875.
They’ve had two great profitable quarters in a row.
Takes guts to post this here, since the FR groupthink is that Musk is an idiot and his company a bankrupt scam.
Trouble with Tesla: Couple sold damaged car but told they can’t sue
Tesla’s Futuristic Door Handles Blamed for Death in Fiery Wreck
Fortunately, Teslas NEVER catch fire ... or do they???
Tesla’s U.S. Sales Drop 39% in Third Quarter
Video: Tesla Drivers Wait Up to an Hour to Charge Electric Vehicles
Tesla on autopilot rear-ended Connecticut cop car as driver checked on dog: police
U.S. agency probes 12th Tesla crash tied to possible Autopilot use
And if Tesla is REALLY doing that well, how come ... Congress Quietly Considers A De Facto Bailout For Tesla And GM
Police Wasted £1.5 Million on Electric Cars That Can’t Chase Criminals
Our Tesla Model 3 Suffered a Catastrophic Failure While Parked
And say "hello" to the new Audi: Feds Will Review Tesla ‘Sudden Unintended Acceleration’ Complaints
Tesla (TSLA) crushes Q4 2019 results: Maintains profit, beats Wall St. revenue estimates
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“STILL without a profitable year”
As most everyone knows, they make up for it on the volume.
“Takes guts to post this here, since the FR groupthink is that Musk is an idiot and his company a bankrupt scam.”
____________________________________________
His company is no more a scam than Ford and GM in their early days. Change is usually harder for someone, somewhere.
I am glad his company is getting less tax credit per sale. It will be nice when it gets to the point Tesla is totally on their own.
Their battery is my concern. Until they can come up with a battery that won’t have it’s energy sucked out by the cold that will be a huge weakness.
I grouse every now and then that I’d like to see dividends and my beloved husband keeps reminding me it took decades for the original car makers to have proper dividends.
Hopefully, I’d like to see that happen before I pass.
LOL
P.S. The only time I raged was when he was SO STUPID as to smoke marijuana and drink on a podcast. The idiot could have lost his contract with the government over his space contracts. That was really a WTF moment, for me.
Sigh.
The Germans are tickled pink to build a factory for him and they are looking forward to it opening up there.
Oh, yes. I really wish the Tesla was not auto-driving.
Never, never a good thing.
And Elon's response to the unexpectedly accelerate stuff really gets me - it's happened so far 127 times causing 110 crashes and 52 injuries and Elon Musk accuses them all of lying. Someday this house of cards will come crashing down.
https://www.digitaltrends.com/cars/tesla-sudden-unintended-acceleration-nhsta-investigation/
Oops. My bad. Your article says it’s up to 500,000 complaints now. All liars according to Elon.
Oh, yes. I really wish the Tesla was not auto-driving.
Never, never a good thing.
I saw something that said your level of trust in the tech depends on your age. Geezers like me insist on keeping a hand on the steering wheel and feet near the brake pedal, while younger people are content to have their hands in their laps and let the car take the corners for them.
LOL
I’m an oldster.
Yep, I’ve got to keep one hand on the wheel.
If it’s electronic it’s subject to hacks.
LOL
There's a reason I refer to TSLA as "the Maalox Roller Coaster" -- it's clearly going to open over $600 tomorrow, and while it's already quite late, I plan to get up around 8 am to monitor the premarket trading. If the company stock price was up before, I suspect the earnings beat and profit beat will hit the gas, er, accelerator pedal.
Contrast the performance with General Electric, a large conglomerate, which pays 4 cents a year dividend and sells at a worse multiple now than it did a couple of days ago, before its earnings beat.
BTW, the other news is, Elon's talking about reducing battery cost. Tesla already manufactures in Nevada almost as many as all other battery makers in the world, combined, and has a clear range advantage over EV competition (plus the charging network continues to build out).
BTW, the other news is, Elon’s talking about reducing battery cost. Tesla already manufactures in Nevada almost as many as all other battery makers in the world, combined, and has a clear range advantage over EV competition (plus the charging network continues to build out).
...
I wonder if they are still on track for the million mile battery. And from what I understand, the battery in the Model 3 is much less likely to catch fire, and so far the real world experience backs that up.
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