Investing.com – Tesla reported on Wednesday fourth-quarter earnings that beat analysts' forecasts and revenue that topped expectations.
Tesla (NASDAQ:TSLA) announced earnings per share of $2.14 on revenue of $7.38 billion. Analysts polled by Investing.com anticipated EPS of $1.64 on revenue of $6.95 billion.
That compares to EPS of $1.93 on revenue of $7.23 billion in the same period a year before. Tesla had reported EPS of $1.86 on revenue of $6.3 billion in the previous quarter.
Analysts are expecting EPS of $0.82 and revenue of $6.63 billion in the upcoming quarter.
Shares rose 6.75% in after-hours trading.
“Tesla is back on track after ramping up its production and building a factory in China that could prove a game-changer for the company’s long-term profitability,” Investing.com analyst Haris Anwar said.
It’s now “in a comfortable position to pursue its growth plans in 2020 after producing very strong numbers for the previous quarter,” he said. “The company's forecast for positive cash flows and its ability to sustain growth going forward offer substantive reasons for investors to feel bullish about Tesla stock. Barring any negative surprises down the road, Tesla is set for a smooth ride this year."
The company said deliveries in 2020 should “comfortably exceed” 500,000 units, which is higher than estimates of around 475,000. Production will likely outpace deliveries this year.
Production of the Model Y crossover utility vehicle in the Fremont plant has begun and is ahead of schedule, Tesla said.
One concern may be that auto gross margin fell 30 basis points quarter over quarter to 22.5%.
The 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 Semi truck, an electric pickup truck, a new generation of the Tesla Roadster and automated driving features.
Total operating expenses rose less than 1% to $1.03 billion
Tesla shares are up 38% from the beginning of the year and are trading at $590.00, still down 2.29% from its 52-week high of $594.50 set on Jan. 22. They are outperforming the Nasdaq, which is up 2.61% year to date.
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-- Reuters contributed to this report.