Tesla continues its upward rally printing largely upbeat performance results for the fourth quarter

The U.S electric car manufacturer, Tesla., revealed the long-awaited quarterly results on Wednesday. Beating the analysts’ estimates for earnings and revenue, Tesla continued its upward rally in the stock market.

According to Refinitiv, analysts had anticipated $7.02 billion in revenue for the car manufacturer in the fourth quarter. Experts had also highlighted their estimate for earnings per share (EPS) at $1.72. Wednesday’s earnings report, however, printed a much higher $7.38 billion in revenue for Tesla in Q4 while the company made $2.14 of earnings per share in the recent quarter.

Tesla Expressed Confidence In Its Net Income And Cash Flow

Tesla expressed confidence in its net income and cash flow to remain positive in the upcoming quarters. The only exception, as per the company, may be driven by the launch of new products or if the company chooses to increase production for its current models.

The quarterly gross margin for the electric car manufacturer, however, was posted at 22.5% that marked a marginal year over year decline. The company also announced on Wednesday that its newest SUV crossover, Model Y, is already in production at its California plant. By 2021, Model Y is also likely to be manufactured at Tesla’s German plant.

According to Tesla, total number of vehicle deliveries in fiscal 2020 is almost certain to read above 500,000 units. Tesla’s storage and solar segment generated $436 million in revenue in the recent quarter seeing a 26% sequential growth. Services and other business segment recorded an even higher $580 million in quarterly revenue for Tesla. In 2020, the company added, growth in solar and storage deployments is likely to print over 50%.

Tesla Branded The Fourth Quarter As Its Best in Terms Of Deliveries

At 112,000 global deliveries of vehicles, the fourth quarter was branded as the best for the company in terms of deliveries. While the figure came significantly higher of the experts’ forecast, it could only manage to hit the lower end of the Q4 sales target that CEO Elon Musk had previously highlighted himself.

Tesla’s performance in 2020 is incredibly upbeat so far. The stock welcomed the new year at around $430 per share. Posting an around 50% growth in January, the stock is currently exchanging hands at $644. In a recent estimate, analysts have forecast the electric car manufacturer to be trading above the $700 mark in the stock market. Share prices are currently around 250% higher as compared to 2019’s low of $185.