Tesla earnings miss expectations, shares slip

Tesla earnings miss expectations, shares slip

Excluding items, Tesla earned $1.93 per share.

The company said it made a net profit of $139.5 million in the three months ended December 31, compared with a $311.5 million profit in the third quarter, when it benefited from regulatory credits.

The Tesla CEO also projected a fourth-quarter profit, but scaled back from the third quarter number.

Musk told investors that he was cautiously optimistic that the automaker could turn a profit in the first three months of 2019-and could turn a profit for every quarter thereafter. Musk pledged at the time it was a sign of more healthy earnings to come. In this, it'll be something more aligned with the Model X SUV's pricing. On Wednesday, the company sought to reassure investors that the manufacturing woes are over.

The California-based company, founded by Elon Musk, reported a profit of $139 million in the fourth quarter, as the business managed to achieve another period of positive cashflow of $910 million, up from $881 million in the previous quarter.

Earlier this month, Tesla announced layoffs impacting about 7% of its full-time workforce.

The Y is apparently completed, designed out, and shares 75 percent of its build and design with the Model 3, so it should be easier to ramp up, Musk said. "It is critical that we continue this trend so that we can keep increasing the affordability of Model 3 while retaining a sustainable level of profitability", the company said in a statement. Analysts expect total deliveries of 90,000.

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"This quarter, as with Q3, shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit", he wrote in a letter to employees.

It may be similar to the Model 3, but Musk said to expect 50 percent higher cost - even double.

Regarding its huge pile of debt, Tesla said it has enough cash to meet its obligations.

No timeline for its production was offered, but Musk has previously said it looks like something from "Blade Runner" and will have several first of their kind features.

The company on Wednesday released its Tesla Fourth Quarter & Full Year 2018 Update. The company warned its results from the current quarter will reflect a "one-time restructuring cost".

Tesla is introducing a new crossover vehicle and expects to produce it in volume by the end of 2020, "most likely" at the Gigafactory between Sparks and Fernley, the company announced Wednesday.

To post a profit, Tesla will have to "successfully execute on many fronts including handling logistics and delivery challenges in Europe and China", the company said.

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