Tesla reported Wednesday a profit of $139 million, or $1.75 a share, and better-than-expected sales, yet failed to meet analysts expectations for earnings in the fourth quarter. Shares, which initially fell after the markets closed, are now up 0.7 percent.
Tesla has managed to string together two profitable periods in a row thanks to sales of the Model 3 and despite several headwinds in the fourth quarter, including a non-cash charge of $54 million attributable to non-controlling interests, higher import duties on components from China, a price reduction for Model S and Model X in China, and the introduction of a lower-priced mid-range version of Model 3.
Perhaps, just as important as the automaker’s income is its cash position. Tesla reported that its cash position improved by $1.45 billion despite the scheduled repayment of a $230 million convertible bond in the fourth quarter.
“We have sufficient cash on hand to comfortably settle in cash our convertible bond that will mature in March 2019,” the shareholder letter to investors said.
Here are a few of the highlights:
- Tesla’s Q4 operating cash flow less capital expenditures improved to $910 million
- Cash and cash equivalents increased by $718 million to hit $3.7 billion at the end of fourth quarter
In October, Tesla reported its first profit after seven consecutive quarters of losses. It was only the third time in its history that it had achieved this milestone.
Tesla reported January 2 that it delivered 90,700 vehicles during the fourth quarter, just shy of what analysts expected. The company said at the time, that it delivered 13,500 Model S sedans, 14,050 Model X SUVs and 63,150 Model 3s.
from TechCrunch https://tcrn.ch/2DM11H5
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