Tesla beats profit estimates, expects strong 2020 production

The electric-car maker’s stock has more than doubled in value since the company posted a third-quarter profit

Tesla China-made Model 3
Tesla's China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China, where the company has been heavily investing [File: Aly Song/Reuters]

Tesla Inc posted fourth-quarter revenue and profit above analysts’ estimates on Wednesday. The United States-based company said its Model 3 and Model Y electric sport utility vehicle capacity should reach 500,000 units per year in its Fremont, California factory. The announcement sent the electric carmaker’s shares up six percent.

The company’s stock has more than doubled in value since it posted a third-quarter profit, beat estimates for 2019 vehicle deliveries, and ramped up production at its Gigafactory in China.

The automotive company has been trying to keep a tight lid on costs but has also been investing in initiatives such as a new factory in Shanghai, a semitruck, an electric pickup truck, a new generation of the Tesla Roadster, and automated driving features.

Total operating expenses rose less than one percent to $1.03bn. Net income attributable to common shareholders fell to $105m, or 56 cents per share, for the three months ending December 31, from $140m, or 78 cents per share, a year earlier.

Excluding items, Tesla earned $2.06 per share. Analysts were expecting a profit of $1.72 per share, according to IBES data from Refinitiv.

Revenue rose to $7.38bn from $7.23bn a year earlier. Analysts had expected revenue of $7.02bn.