Tesla shares tank 9% on earnings miss, despite having record deliveries

Tesla crash

Tesla Inc (NASDAQ: TSLA) shares tumbled in after-hours trading Wednesday after the company missed Wall Street’s second-quarter revenue and earnings estimates.

The electric-car maker produced and delivered more vehicles in the June quarter than it did in its previous quarters. Tesla also ended the quarter with $5 billion in cash and attributed a portion of its net loss to restructuring charges related to store closings and layoffs.

Shares of the company were down $25.53, or 9.64% in after-hours trading following the earnings report. The stock, which finished the regular trading hours with a gain of 1.81%, has lost more than 20% since the beginning of the year.

Tesla Earnings & Outlook

Tesla had a net loss of $408 million, or $2.31 per share versus a loss of $718 million, or $4.22 per share, in the same period last year. Excluding one-time costs and gains, the company lost $1.12 per share during the quarter, compared with losses of $3.06 per share in the earlier-year period.

Analysts were expecting an adjusted quarterly loss of $0.40 per share, according data compiled by Refinitiv.

Sales rose to $6.35 billion, up 40% from the prior-year period when the automaker generated revenue of $4 billion. On average, analysts surveyed by Refinitiv had forecast revenue of $6.41 billion in the quarter.

The company said it expects to sell between 360,000 to 400,000 vehicles in 2019, after delivering around 158,200 vehicles in the first half of the year.

Tesla Executive Comments

“In the second quarter of 2019, we achieved record deliveries of 95,356 vehicles and record production of 87,048 vehicles, surpassing our previous quarterly records of ~91,000 deliveries and ~86,600 units produced in Q4 of 2018. This is an important milestone as it represents rapid progress in managing global logistics and delivery operations at higher volumes,” Tesla said its letter sent to shareholders.

“As a result of this growth and operational improvements, we generated $614 million of free cash flow (operating cash flow less capex) in Q2. Combined with our public offering of equity and convertible bonds (net proceeds of $2.4 billion), we ended the quarter with $5.0 billion of cash and cash equivalents, the highest level in Tesla’s history,” the company said.

Tesla Inc Profile

Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities.

The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, and Model 3 in 2017. Global deliveries in 2018 were 245,506 units. Tesla went public in 2010 and employs about 50,000 people. – Warrior Trading New