Tesla who have delivered a positive performance in the past year reported a slightly mixed earnings report on Wednesday that missed some analysts estimates. The company behind the electric cars and sustainable energy solutions delivered a revenue for the fourth quarter ending December 31, 2016, that hit analysts forecasts but missed most earnings estimates.
Fourth Quarter Earnings Report
For the earnings report on the final quarter of 2016, Tesla reported a revenue of $2.28 billion beating most analysts estimates of $2.19 billion while its net loss was around 78 cents per share. Although it led to a missed earnings report, it was still lower than the loss from the same period a year ago of $2.44 per share. Overall, the company’s total gross margin for the year 2016 has improved compared to the same quarter last 2015.
Tesla’s fourth quarter cash flow also increased by $309 million while over $500 million was invested for the Model 3’s capital expenditure and the first Gigafactory in Nevada.
Orders for Tesla’s sought after Model S and Model X have jumped by 48% compared to the previous year with both vehicles gaining widespread recognition for its quality all over the world. There are currently plans to upgrade the Model S P100D which has been tested for better vehicle acceleration.
The company also included in its earnings report that their Autopilot hardware platform has been improved and upgraded to accelerate the evolution of the Autopilot and has been installed on 77% more vehicles than the previous year. More than 40,000 units of the Model S and Model X is expected to be delivered by the company during the first two-quarters of the year.
Total loss of the electric car company came at around $121.3 million considerable lower than the $320.4 million in the same period last year.
Effect of Q4 Earnings On Shares
Although the company reported a high revenue for the last quarter of 2016 beating most analyst estimates, Tesla shares edged 1.4% lower during the trading session’s close but rose later on during the after-hours trading.
Shares of the company inched ten points higher to $275 compared to Friday’s session after it hit a 52-week high last week on the eve of the earnings report release. On Tuesday’s session, the stock’s price closed 2 points higher at $277.39 recording an intraday high of $281.40 from opening at $275.45.
Shares of the company opened the day of the earnings report higher at $280.31 before closing 7 points lower at $273.51.
Aside from the earnings report, the company also announced on Wednesday that Tesla’s current chief financial officer Jason Wheeler will be leaving the company and is set to be replaced by Tesla’s first chief financial officer Deepak Ahuja who left in 2015 after working for the company for seven years.
Tesla to Further Expand In 2017
In the middle of CEO Elon Musk’s plans to further upgrade the company’s autopilot system and the updates it intends to conduct on its Model S and X, the company is also set to open around two or three more factories this year similar to the Gigafactory which was opened in January in Nevada.
The development of the Model 3 vehicle is also emphasized in the company’s earnings report where the expansion of the company’s mobile repair service is also ongoing.
Tesla also intends to make more use of its SolarCity acquisition this year as it announced that the company is currently working on expanding their solar energy department and creating more solar products to be made available on Tesla stores.