- Tesla reported a smaller-than-expected loss and beat on revenue in the fourth quarter.
- The company reaffirmed its production targets for the Model 3 sedan, and expects to produce 5,000 cars per week by the end of Q2.
- Tesla’s shares gained about 1.5% after the earnings report.
Tesla on Wednesday reported a smaller-than-expected loss for the fourth quarter and beat on revenues.
The company earned $3.29 billion in revenue but recorded a net loss of $770.8 million, or $3.04 adjusted per share. In its earnings release, Tesla said it expected 2018 revenue growth to “significantly exceed” last year, driven by the Model 3 sedans and its energy-storage units.
Analysts had expected another quarter of losses and cash burn at the company; the median forecast was for an adjusted loss per share of $3.20 on revenues of $3.28 billion, according to Bloomberg. Tesla burned through cash during the quarter with a negative free cash flow of $276.8 million. However, this was down from the same period a year ago, and less than analysts had expected. Tesla burned through a record $1.42 billion in the the third quarter.
Tesla reaffirmed its forecast for Model 3 production at a rate of 2,500 vehicles by the end of the first quarter, and 5,000 by the end of Q2. The company is working to keep the rollout of its mass-market Model 3 on schedule, but has a history of missing its timelines and Wall Street’s forecasts.
Last month, Tesla said it delivered 1,550 cars in the fourth quarter, a little more than half of what analysts had expected.
Tesla’s shares gained 46% last year and nearly 11% in 2018 through Wednesday’s close even after the broader stock market decline, giving the the company a market cap of $58 billion. The electric carmaker’s valuation has been an eyesore for some on Wall Street who compare it to profitable giants in the auto industry like General Motors.
Tesla reports smaller loss than expected, beats on revenue (TSLA)