Tesla stock sinks 7% after quarterly profit is a miss

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Tesla stock sinks 7% after  quarterly profit is a miss


Tesla Inc. late Wednesday reported a sixth-straight quarter of profit and a sales beat, but earnings were below Wall Street expectations and the stock tanked more than 7% in after-hours trading.

Tesla
TSLA,
-2.14%

said it earned $270 million, or 24 cents a share, compared with earning of $105 million, or 11 cents a share, in the year-ago quarter. Adjusted for one-time items, the Silicon Valley car maker earned 80 cents a share.

Revenue rose 46% to $10.74 billion from $7.38 billion a year ago, thanks to “substantial growth” in deliveries, the company said.

Analysts polled by FactSet expected adjusted earnings of $1.02 a share on sales of $10.47 billion.

The company said it expects a 50% annual growth for its deliveries in future years, and that it likely would “grow faster” in 2021.

That would mean around 750,000 vehicles for in 2021, which would compare with slightly below 500,000 cars delivered in 2020, a year marred by factory stoppages and delays due to the pandemic.

Deliveries are Tesla’s proxy for sales. The FactSet surveyed analysts expect deliveries around 800,000 vehicles for this year.

Tesla shares have gained nearly 700% in the past 12 months, compared with gains around 17% for the S&P 500 index
SPX,
-2.57%
.

Earlier this year, the stock went on its longest-ever winning run.



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