Tesla beats earnings, share price rockets over $620 in after hours trading

Tesla has released their Q4 2019 earnings results, and despite all the hype of the last 3 months, the company still managed to surprise investors by beating expectations.

Tesla announced that it made $7.384 billion in revenue and a surprise profit of $2.14 per share (Non-GAAP) in Q4 2019.

Investors were expecting revenue of about $7.047 billion for the quarter and a gain of $1.62 per share.

Tesla had already announced that they had sold 112,000 cars in the same quarter, again beating expectations.

Tesla now has $6.3 billion cash on hand, an increase of $1 billion.

During their earnings call Tesla also announced that their much-anticipated Model Y crossover is now in production, with deliveries starting in March this year, and that the EPA range has also been increased to 315 miles via efficiency improvements, making it the most efficient EV SUV ever.

Tesla made the following predictions about their business:

Product
Production ramp of Model Y in Fremont has begun, ahead of schedule. Model 3 production in Shanghai is
continuing to ramp while Model Y production in Shanghai will begin in 2021. We are planning to produce limited
volumes of Tesla Semi this year.

Volume
For full year 2020, vehicle deliveries should comfortably exceed 500,000 units. Due to ramp of Model 3 in
Shanghai and Model Y in Fremont, production will likely outpace deliveries this year. Both solar and storage
deployments should grow at least 50% in 2020.

Cash Flow
We expect positive quarterly free cash flow going forward, with possible temporary exceptions, particularly
around the launch and ramp of new products. We continue to believe our business has grown to the point of
being self-funding.

Profitability
We expect positive GAAP net income going forward, with possible temporary exceptions, particularly around
the launch and ramp of new products. Continuous volume growth, capacity expansion, and cash generation
remain the main focus.

In response, Tesla’s share price spiked even further after hours, hitting a high of $623.

See the full release here.

Q4’19 Update by Fred Lamert on Scribd

Via Electrek