Tesla 4Q earnings top expectations, the company sees more than 500,000 deliveries in 2020

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tesla’s (TSLA) The stock rose more than 10% in late trading after the company released fourth quarter results that slightly exceeded consensus expectations after local production in China started faster than expected and deliveries reached record levels at the end of last year. “data-reactid =” 15 “> Tesla’s (TSLA) stock rose more than 10% in late trading after the company achieved fourth quarter results that slightly exceeded consensus expectations and were faster than expected in local production China and record deliveries late last year.

Here are the key figures from the Tesla report for the fourth quarter of 2019 compared to the consensus expectations created by Bloomberg:

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Tesla has also increased deliveries compared to that last year and said vehicle deliveries "should comfortably exceed 500,000 units in 2020." Tesla handed over 367,500 units in 2019or a level that matches the company’s previous goal. Deliveries in the fourth quarter amounted to around 112,000 units. “Data-reactid =” 20 “> Tesla also led to an increase in deliveries compared to the previous year, and vehicle deliveries are likely to” be well over 500,000 units in 2020. Tesla delivered around 367,500 units in 2019. Deliveries in the fourth quarter amounted to around 112,000 ,

“Due to the ramp of Model 3 in Shanghai and Model Y in Fremont, production is expected to exceed deliveries this year,” said a statement on Wednesday. “Both solar and storage deployments should grow by at least 50% in 2020.”

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According to Zachla’s CFO, Zachary Kirkhorn, the outbreak of the coronavirus could temporarily affect first quarter results. Tesla anticipates a delay of one and a half weeks for the ramp of the Model 3 units built in Shanghai because the government is calling for the factory in the region to be closed. Kirkhorn said the company also monitors supply chain interruptions for Fremont-built cars, but has “not noticed anything significant” so far.

In its earnings release, Tesla announced that model Y production would begin in 2021 at the newly opened Gigafactory in Shanghai. Tesla’s Fremont facility has already begun production of the Y model this month or early. Deliveries of the Y models begin at the end of the current quarter.

Tesla said that the installed production capacity for the Model 3 and Model Y is now 400,000 units per year and that it is adding machines in its factories to increase that level to 500,000 units per year.

The company’s liquidity situation also improved in the fourth quarter, further bolstering cash flow concerns that were once the subject of research. Cash and cash equivalents improved $ 930 million in the quarter to a record $ 6.3 billion. According to Tesla, this was “due to ongoing cost control across the company.”

Elon Musk, CEO of Tesla Inc, will attend an opening ceremony for Tesla's China-made Model Y program in Shanghai, China, on January 7, 2020. REUTERS / Aly Song

Elon Musk, CEO of Tesla Inc, will attend an opening ceremony for Tesla’s China-made Model Y program in Shanghai, China, on January 7, 2020. REUTERS / Aly Song

The gross margin observed for Tesla in the fourth quarter narrowed from 22.8% in the fourth quarter to 22.5% in the fourth quarter and to 24.3% in the same period last year. Tesla attributed this to a higher proportion of models 3 sold with lower profit margins as well as various price reductions.

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“We expect the average selling price (ASP) to not change significantly in the short term, which means volume growth and revenue growth should correlate more closely this year,” said Tesla. The company anticipates positive GAAP net income in the future, except in certain cases related to the launch and launch of new products.

“Continuous volume growth, capacity expansion and cash generation remain the focus,” it said.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tesla's latest earnings report follows a The performance of his stock has more than doubled since then Third quarter results in October, Elon Musk, CEO of $ 420 per share, has considered keeping the company private. This has increased the company’s market cap to more than $ 100 billion, or more than that of General Motors and Ford combined. “Data-reactid =” 40 “> Tesla’s latest earnings report follows a rapid performance of its stock. The stock has more than doubled since the third quarter results in October, significantly exceeding the $ 420 per share, CEO Elon Musk had once considered in a plan to privatize the company – or more than that of General Motors and Ford combined.

The share closed on Wednesday at a record high of $ 580.99 per share and topped the $ 650 per share level after the close of trading.

These price gains coincided with a surprising third quarter profit, record-breaking delivery results in the last three months of the year, and an unexpectedly quick completion of the company’s Shanghai Gigafactory.

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