Home Headline News Elon Musk Delivers 1st Profit for Tesla

Tesla Motors reported its first annual profit Wednesday, but shares fell after Elon Musk’s electric car company scored lower-than-expected fourth quarter earnings.

Tesla, a soaring stock for much of the last year, reported 2020 profits of $721 million, reflecting the company’s strong ramp-up in production and deliveries despite a hit from Covid-19. Tesla had reported a 2019 loss of $862 million.

Revenues for 2020 jumped 28 percent to $31.5 billion.

“This past year was transformative for Tesla,” the company said in its earnings report.

“Despite unforeseen global challenges, we outpaced many trends seen elsewhere in the industry as we significantly increased volumes, profitability and cash generation.”

Tesla said that 2020 was a “critical year” for the company but 2021 “will be even more important” as the company escalates output at its China factory and targets first production at new plants now being built in Germany and the US state of Texas.

In the fourth quarter, the company reported profits of $270 million, up 157 percent from the year-ago period on a 46 percent rise in revenues to $10.7 billion.

That translated into profits of 80 cents per share, below the $1.01 projected by analysts.

The company did not offer detailed 2021 forecasts for sales or profit.

In terms of volume, “over a multi-year horizon, we expect to achieve 50 percent average growth in vehicle deliveries,” Tesla said. “In some years we may grow faster, which we expect to be the case in 2021.”

Shares were down 4.5 percent at $824.90 in after-hours trading.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.