Tesla Inc remains profitable for the sixth consecutive quarter

Written by: Wajeeh Khan
January 27, 2021
  • Tesla Inc remains profitable for the sixth consecutive quarter.
  • The electric carmaker reports better than expected sales in Q4.
  • The U.S. firm forecasts roughly 750 thousand deliveries in 2021.

Tesla Inc. (NASDAQ: TSLA) said on Wednesday that its sales in the fiscal fourth quarter came in better than expected. It was the sixth consecutive quarter that the U.S. firm concluded with profit. The company, however, earned less than what analysts had anticipated in Q4.

Tesla shares slid close to 5% in extended trading on Wednesday. Including the price action, the stock now has a per-share price of £602 per share versus £52.76 per share in March 2020 when the Coronavirus pandemic wreaked havoc on the global financial markets.

Tesla’s Q4 financial results versus analysts’ estimates

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Tesla said that its earnings in the fourth quarter printed at £197.20 million that translates to 17.53 pence per share. In the same quarter last year, its earnings were capped at a much lower £76.69 million or 8.03 pence per share.

Adjusted for non-recurring items, the electric car manufacturer earned 58.43 pence per share in Q4. In terms of revenue, Tesla reported £7.84 billion for the fourth quarter that represents a 46% year over year increase. The U.S. firm attributed its hawkish performance substantial increase in deliveries in the recent quarter.

According to Fact, experts had forecast the company to post £7.65 billion of revenue in the fourth quarter. Their estimate for per-share earnings stood at a higher 74 pence per share. Tesla’s earnings report comes only weeks after it snatched the 5th spot from Facebook on the list of Wall Street’s most valuable companies.

Tesla forecasts roughly 750 thousand deliveries in 2021

According to the Palo Alto-based company, growth in 2021 is likely to be much faster. For future years, Tesla forecasts an annual growth of 50% for deliveries. Statistically, its estimate translates to roughly 750 thousand deliveries in 2021 versus close to 500 thousand in 2020.

Tesla acknowledged on Wednesday that its performance took a hit this year due to the ongoing Coronavirus pandemic that disrupted productions at its factories. FactSet Consensus for deliveries in 2021 currently stands at 800 thousand.

Earlier this week, the European Union approved Tesla Inc. to receive state-backed financial aid for battery projects.

Tesla performed massively upbeat in the stock market last year with an annual gain of more than 700%. At the time of writing, the American electric vehicle manufacturer has a market cap of £598.28 billion and a price to earnings ratio of 1,712.16.