Tesla Inc Late Wednesday reported its sixth straight quarter of earnings and sales declines, but fell short of Wall Street expectations and disappointed investors hoping for a clear sales target for the year

The stock fell in after-hours trading by up to 7%

The company earned $ 270 million, or 24 cents per share, for the fourth quarter, compared to earnings of $ 105 million, or 11 cents per share, for the year-ago quarter, after adjusting for one-time items, the Silicon Valley automaker made 80 cents per share

Revenue rose 46% to $ 10774 billion from $ 7 a year ago was 38 billion, in part due to “significant growth” in shipments, which was offset by additional costs

Analysts surveyed by FactSet expected Tesla to post adjusted earnings of $ 102 a share of $ 1047 billion in revenue

With new vehicles, new factories and ramped up production on the horizon, “2021 will be a great year for Tesla,” said CEO Elon Musk in a conference call with analysts following the results. “I am very much looking forward to and look forward to the future to implement them ”

So far, Tesla had beaten analyst projections on every quarterly reporting day since October 2019 when it posted a surprising profit over Wall Street’s expectations of a loss in the third quarter of 2019, which was the company’s first full year of profitability

Tesla’s Miss “was driven by weaker than expected margins,” said CFRA analyst Garrett Nelson. Investors also viewed the lack of a direct sales forecast for 2021 as negatively, he said

Speaking to analysts, Musk attempted to justify Tesla’s skyrocketing market cap, currently north of $ 820 billion, by tying it to the company’s suite of self-driving features and software

Fully self-driving Teslas could be used as “robo-taxis” to generate income for their owners in the future, he said

Musk also said that Tesla plans to offer the self-driving capabilities as a subscription in the near future and that the company is “open” to considering licensing the software to other automakers

In the letter to investors, Tesla shied away from offering a simple sell outlook, instead saying it “simplified our approach to consulting” this year to focus on longer-term goals

Musk “has likely chosen to be less specific in the face of various uncertainties,” including those related to pandemics, said CFRA’s Nelson.In addition, without a specific annual goal, Tesla is more flexible and is preparing to ” Too little to promise so that they can deliver too much ”

In a letter to shareholders, Tesla said it plans to increase its manufacturing capacity “as soon as possible,” and in deliveries, its proxy for sales, Tesla expects average annual growth of 50% versus a ” Multi “year horizon”

“In a few years, we could grow faster, which is what we expect in 2021,” Tesla said in the letter that the executive reiterated in the call

A 50% growth would deliver about 750000 vehicles this year, compared to the nearly 500000 cars delivered in 2020, a year impacted by factory shutdowns and delays due to the pandemic

Tesla’s average sales price for its vehicles fell 11% year over year as the mix shifted from its Model S and Model X luxury vehicles to the cheaper Model 3 and Y, the company said in a letter to shareholders with Tesla executives reiterating in the call that the change will continue to face headwinds

The company said it is still on track to start vehicle production at its new plants in Germany and Texas with its own battery cells this year and it is also on track with the sale of its Semi commercial vehicle at the end of the year to begin

On the call, Musk said he expected to ship the Cybertruck, Tesla’s pickup, by the end of this year “if we’re lucky,” and after some design fixes, but series production is slated for 2022, he said

Tesla stocks are up nearly 700% over the past 12 months, compared to gains of around 17% for the S&P 500 index
Earlier this year, the stock had its longest profit run ever

The momentum that apparently contributed to brief pressure on the inventory of video game retailer GameStop Corp also appears to be having an impact on stocks of a variety of other severely shortened companies

Tesla, Tesla Earnings, Tesla Inc

World News – United States – Tesla stock falls after the company reported its first loss in profit in more than a year

Source: https://www.marketwatch.com/story/tesla-stock-sinks-7-after-quarterly-profit-is-a-miss-11611782700