Tesla Reports Wider-Than-Expected Loss, Revenue Beats, Model 3 On Track


Fourth-quarter results compare to consensus estimates calling for a per share loss of $0.43 and $2.18 billion in revenues. Revenue was $2.28 billion versus an estimate of $2.13 billion.

The options market has priced in an expected share price move of just over 6% in either direction around the earnings release, according to the Market Maker Move™ indicator on the thinkorswim® platform. In Q3, analysts were forecasting TSLA to report a loss of $0.54 a share but the carmaker surprised by posting a profit of $0.71 a share.

Analyst Clement Thibault of Investing.com said Musk's leadership and vision has benefited the company, but it has yet to show up on the bottom line. Currently, TSLA is a #4 (Sell) on the Zacks Rank, and is up 2.12% to $273.51 per share in trading shortly after its earnings report was released. A lot of analysts have set their eyes on the details CEO Elon Musk will be giving out regarding the upcoming Model 3.

Tesla is heavily banking on its Model 3 for the current year and has already ramped up its production efforts to achieve its target of manufacturing 500,000 cars by 2018. However, the stock is trading at -3.48% versus recent highs ($287.39).

In the letter, Tesla announced that "2016 revenue of $7 billion, up 73% from 2015".

Samsung Galaxy Tab S3 images leaked ahead of the MWC launch
The sales will also help it avoid the environmental issues related to the complete disposal of the said 2.5 million handsets. It appears that Samsung could soon start selling refurbished Galaxy Note 7's in some markets, according to a new report .

Tesla paid $2.1 billion for SolarCity in November. It turned its second profitable quarter previous year, thanks to increased demand for its vehicles and selling pollution credits. Musk envisions the combined company offering a full selection of renewable energy products - from solar panels, roofs and home power storage to electric vehicles. Although the auto is being priced without reliance on tax incentives, numerous 300,000+ deposits were placed hoping to receive one anyway.

Other hedge funds also recently added to or reduced their stakes in the company.

If Tesla manages to bring the cost down to the $100/kWh range, then its EVs, especially the Model 3 will get even more competitive with mainstream cars running on fossil fuel.

Tesla shares have climbed 28 percent since the beginning of the year.

Without one-time items Tesla lost 69 cents per share. There are now 13 brokerage firms covering Tesla Motors, Inc., offering earnings per share estimates as well as future price target projections. The shares were sold at an average price of $197.60, for a total transaction of $549,130.40. Given that its average daily volume over the 30 days has been 4.65 million shares a day, this signifies a pretty significant change over the norm. Tesla's dominance in the EV market will prevent short-sellers (where short float is 27%) from making much money from the stock.