Skip to main content

Market Overview

Tesla Reports Q4 Earnings Beat, Record Vehicle Deliveries

Tesla Reports Q4 Earnings Beat, Record Vehicle Deliveries

Tesla Inc (NASDAQ: TSLA) popped more than 2 percent post-market Wednesday on top- and bottom-line beats.

The firm’s fourth-quarter adjusted earnings per share came in at $(3.04) and revenue at $3.29 billion against consensus estimates of $(3.12) and $3.28 billion.

Q4 Highlights

  • The end-of-quarter cash balance sat at $3.4 billion.
  • Energy generation and storage revenue decreased 6 percent sequentially.
  • Model 3 deliveries came in at 1,542, well below early Street estimates of 5,200.
  • Model S and X deliveries increased 10 percent sequentially and 28 percent year-over-year to a total of 28,425.
  • Model S and X orders fell short of the third-quarter’s all-time high but increased year-over-year.

“As we indicated heading into Q4, production of Model S and Model X during the quarter was limited to 22,137 vehicles due to reallocation of some of the manufacturing resources to Model 3 production,” the report read. “This enabled us to reduce our finished-goods inventory to the lowest level in about 18 months.”

The third quarter was also characterized by increases in solar and Powerwall sales, the unveiling of the Semi and next-generation Roadster, as well as the opening of 12 new stores and service locations. Next year is seen to hold similar catalysts.

Q1 And 2018 Guidance

  • Management targets weekly Model 3 production rates of 2,500 by the end of the first quarter and 5,000 by the end of the second, resulting in 25-percent gross margins.
  • Management targets 100,000 Model S and X deliveries in 2018.
  • Capex is expected to increase in 2018 to support production and build stores, service centers and Superchargers.

“2018 will be a transformative year for Tesla, with a high level of operational scaling,” CEO Elon Musk and CFO Deepak Ahuja wrote in the report. “As we ramp production of both Model 3 and our energy products while keeping tight control of operating expenses, our quarterly operating income should turn sustainably positive at some point in 2018.”

Related Links:

Tesla's New Compensation Pushes Elon Musk To Focus On Profitability, Baird Says

Tesla's Q4 Model 3 Miss: Adam Jonas Says Buy The Dip


Related Articles (TSLA)

View Comments and Join the Discussion!

Posted-In: Model 3 Model S Model XEarnings News Guidance Top Stories After-Hours Center Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at