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.
The stock is now up to $651.
I ran out of Maalox, so I sold it in the past 15 minutes or so, at $928, which is $12 off the interday high. Minutes earlier it was around $921 I think, maybe $920. Holding it since sometime in January has yielded a 50% gain in my portfolio, and I didn't even have the whole thing in that one stock (that would be a bad practice).
BTW, based on probable earnings miss, I suspect GM is going to crater. A bunch of that expectation is already apparent in the P/E ratio (compare with Ford's).
Congratulations. I hope it’s in a tax free account.
Oh, okay, sure, now up to $945.
Bulls make money.
Bears make money.
Hogs get slaughtered. :^)
That’s the only way to do it! :^)
I got back on the horse about mid- last week, called the bounce point pretty well. The rumor during premarket today was, China's told some of the manufacturers, like Tesla, that it is going to help them get back to work. By the time I woke up today, it was up, and at 9:30 it opened higher and dragged my little portfolio kicking and screaming upward. There's been some backsliding, but I believe we're familiar with that. :^)
Lithium mining getting a boost (lost the URL on that one) thanks to Tesla.
Tesla battery line at Fremont:
https://twitter.com/ElectrekCo/status/1227289523622752258
Giga Texas?
https://www.google.com/search?q=tesla+giga+texas+site%3Ayoutube.com
https://www.swtimes.com/entertainmentlife/20200209/tesla-ceo-elon-musk-hinted-that-his-electric-vehicle-company-may-build-factory-in-texas
Giga Mexico?
https://cleantechnica.com/2020/02/09/why-giga-mexico-offers-tesla-advantages-that-giga-texas-cant-match/
China production resumes
https://www.investors.com/news/technology/tesla-stock-climbs-china-production-resumes-coronavirus-delay/
Are Teslas Any Good In The Snow?
Hint: It’s Really All About the Tires and Not the Car!
https://www.youtube.com/watch?v=2KmxHfYHXsA
Bernstein analyst Toni Sacconaghi raised his price target from $325 to $730, a 120% jump. Still, his rating remains the equivalent of Hold. His price target is about 13% below where shares are trading Monday morning.
Morgan Stanley analyst Adam Jonas is more bearish than Sacconaghi. He rates Tesla shares the equivalent of Sell. In his research reports, Jonas outlines bull, bear and base case price scenarios to help his clients understand what could happen. His prior best-case scenario valued Tesla at about $650 a share. He upped it to $1,200 on Monday, an increase of about 80% and above recent trading levels. His official price target for Tesla shares, however, went from $360 to $500.
Cowen's Jeffrey Osborne, another bearish analyst, also increased his price target. He isn't buying the Tesla rally though. Osborn's target went from $280 to $290 a share, up only $10 or 3.6%. That leaves Osborne with one of the lowest target prices on Wall Street.
All analysts have been chasing the Tesla stock rally. Shares are up about 128% over the past three months. Analysts' price targets have only increased about 60% over the same span, from about $330 to $530 a share.Barrons: Tesla Stock Is Still Skyrocketing. Critics Are Starting to Give Up
tesla lithium iron phosphate battery deal:
851.21, +51.18 (6.40%)
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