Tesla Posts Narrower-Than-Expected Q4 Loss

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The day after Tesla and SpaceX CEO Elon Musk blasted his Tesla Roadster into space, his electric vehicle company's mounting losses are set to bring him back to Earth again. That would be a record quarterly loss for the Palo Alto, Calif. -based automaker, which is struggling to meet production targets for its first mass-market vehicle, the Model 3 sedan. Tesla's revenue for the quarter was up 43.9% compared to the same quarter last year. equities analysts anticipate that Tesla will post -11.38 EPS for the current year. On a full-year basis, however, the company used almost $3.5 billion in cash, more than twice the amount it used in 2016.

Tesla (NASDAQ:TSLA) last issued its quarterly earnings results on Wednesday, February 7th. Its cargo, Musk's cherry red convertible, is now heading toward an asteroid belt between Mars and Jupiter.

While Tesla's true believers love these stunts, some analysts are questioning whether Musk should be spending more time fixing Tesla's woes. Barclay's analyst Brian Johnson expects those targets to remain on track, but said Tesla may give more guidance on when it will reach production of 40,000 models per month. In the three months ending December 31, 2017, Tesla delivered 1,542 of the cars.

Vetr raised shares of Tesla from a "strong sell" rating to a "sell" rating and set a $320.97 price target for the company in a research report on Friday, October 13th.

Despite the competitive environment, Tesla's stock has soared 35 percent in the a year ago, making the company the second-most valuable USA automaker, with a market capitalization of $56.1 billion, just behind General Motors Co, which had net revenue of $145.6 billion in 2017. The electric vehicle producer reported ($3.04) EPS for the quarter, topping the consensus estimate of ($3.12) by $0.08.

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The higher defense spending should allow President Donald Trump to make good on a campaign promise for a US military build-up. The bill also increases the debt ceiling until March 2019, which Sanders said will move the USA away from crisis budgeting.


Tesla ended the fourth quarter with $3.37 billion in cash, just below the $3.5 billion in the previous quarter, which had been boosted by a $1.8 billion debt sale. But he didn't say whether the company will meet its stated goal of making 10,000 Model 3s per week at some point this year.

CEO PAY. This will be Musk's first earning call since last month's announcement of a proposed all-or-nothing pay package for him. The package requires Tesla, which is worth a little less than $60 billion now, to grow in $50 billion leaps to a staggering $650 billion market capitalization over the next decade.

"All the cash concerns will be alleviated once they get these cars on the road", said Tasha Keeney, an analyst at ARK Investment Management, which holds Tesla shares.

"And so it was really, I think, on balance, a phenomenal year", Musk said in remarks made on the call.

Looking ahead, Tesla expects robotic production facilities to accelerate its assembly lines. All that costs money, which Tesla is burning through at a fast clip. Still, Musk said he is "cautiously optimistic" that Tesla will be profitable this year. Among other things, we started delivering Model 3 to customers, unveiled the Semi and the next-generation Roadster, installed the world's largest battery in Australia, and had record vehicle production and deliveries of Model S and Model X. We also learned many lessons from the slower than planned production ramp of Model 3.

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