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Tesla stock rockets to new highs after fourth-quarter profit beats estimates

Shares shot up higher than one of Elon Musk’s SpaceX rockets in after-hours trading.

Tesla stock rockets to new highs after fourth-quarter profit beats estimates
[Photo: Torbjorn Sandbakk/Unsplash]
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Tesla’s stock has been on a tear lately, and that winning streak continued on Wednesday after it posted its fourth-quarter earnings report.

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The electric-vehicle maker reported adjusted earnings per share of $2.14, compared to a consensus estimate of $1.72 per share cited by CNBC. Quarterly revenue was $7.4 billion against an estimate of $7.02 billion.

Tesla shares shot up higher than one of Elon Musk’s SpaceX rockets in after-hours trading, with the price up almost 12%. The stock is now worth more than three times what it was just eight months ago.

That wasn’t the only good news: Tesla is ahead of schedule for its Model Y SUV, with a production ramp beginning this month.

As for its Model 3, Tesla said it delivered 92,620 vehicles in the fourth quarter, up an impressive 46% year over year. Model S and X deliveries were down 29% to 19,475 vehicles.

“2019 was a turning point for Tesla,” the company said in its earnings release. “We demonstrated strong organic demand for Model 3, returned to GAAP profitability in 2H19 and generated $1.1B of free cash flow for the year. We achieved strong cash generation through persistent cost control across the business.”

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[Tesla earnings release]
Despite the fourth-quarter rally, sustained profits remain elusive for Tesla, and the company posted a loss of $862 million for 2019. We’ll have to wait and see if Musk and the gang can keep up the momentum.

You can check out the full earnings release here.

About the author

Christopher Zara is a senior staff news editor for Fast Company and obsessed with media, technology, business, culture, and theater. Before coming to FastCo News, he was a deputy editor at International Business Times, a theater critic for Newsweek, and managing editor of Show Business magazine

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