Tesla Earnings: What Does The Automaker Have In Store For Investors?


Tesla, Inc. (NASDAQ: TSLA)

Tesla will report its fiscal 2018 fourth-quarter financial results after the closing bell on January 30. The automaker beat Wall Street estimates on both profit and revenue in its last reported quarter. Moreover, both GAAP and non-GAAP earnings were phenomenal compared with the same three months last year.

Revenue grew to an estimated $21 billion last year from just $7 billion in 2016, while vehicle deliveries rose at an even quicker rate, jumping to 245,240 in 2018 from roughly 76,230 in 2016. Yahoo Finance polled a total of 27 analysts and each of them predict that the Palo Alto, CA-based company will post positive per-share-earnings throughout 2019, easing fears over its stressed cash flow and high debt levels.

However, the analysts still expect the company to make a loss on a full-year basis in fiscal 2018, even though the automaker said it will make a profit in its fourth quarter. Analysts on average expect it to post fiscal 2018 non-GAAP loss of $3.04 per share for the year. Though they vary in their opinion about the bottom-line performance, their consensus view is that company will it report earnings of $2.26 per share on Wednesday.

Earlier this month, Tesla CEO Elon Musk posted a blog saying the company plans to cut its full-time employee headcount by about 7 percent and warned that fourth-quarter earnings won’t match its third-quarter performance. Musk said Tesla faces a tough challenge of making its solar products, cars, and batteries cost-competitive with fossil fuels. The chief executive said the products are still too expensive for most customers, according to the blog that was sent to all employees.

Further, the effects of the unresolved trade disagreement between China and the US as well as slumping auto sales in China are highly likely to take a toll on the earnings. Nonetheless, analysts are still encouraged by Tesla’s remarkable delivery numbers, though it is almost certain that the company will not report a record profit this time.

Tesla, Inc. Profile

Tesla, Inc. engages in the design, development, manufacture, and sale of fully electric vehicles, energy generation and storage systems. It also provides vehicle service centers, supercharger station, and self-driving capability. The firm operates through Automotive, and Energy Generation and Storage segments. The Automotive segment includes the design, development, manufacture and sale of electric vehicles.

The Energy Generation and Storage segment includes the design, manufacture, installation, sale, and lease of stationary energy storage products and solar energy systems, and sale of electricity generated by its solar energy systems to customers. The company was founded by Jeffrey B. Straubel, Elon Reeve Musk, Martin Eberhard, and Marc Tarpenning on July 1, 2003 and is headquartered in Palo Alto, CA. – CNN Money