Tesla Lost Almost a Billion Dollars Last Year, But its Stock is Rising

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Tesla Lost Almost a Billion Dollars Last Year, But its Stock is Rising

In case there was any doubt, speculation is alive and well on Wall St.

Tesla’s stock surged in after hours trading today despite posting a lost of $320 million in the fourth quarter and almost a billion ($889 million) on the year. The spike was due to another round of lofty expectations for the year ahead.

But the reason’s for optimism aren’t without merit. Tesla did post a revenue of $1.2 billion in the quarter, up 27% from the year before.

During the earnings call, Tesla said it expects to deliver 80,000 to 90,000 new vehicles this year. It confirmed it delivered 17,478 vehicles in the fourth quarter including 206 Model X crossovers.

SEE ALSO: Tesla to Update Self-Parking Feature Due to Safety Concern

Global deliveries are another positive note, rising 76 percent year-over-year, something CEO Elon Musk called “really quite dramatic.” Non-GAAP automotive gross margin, excluding credits, came in at 20.9 percent.

For this quarter, Tesla hopes to deliver 16,000 units that would represent a 60-percent increase year-over-year. Gross margins for the Model S will “begin to approach” 30 percent by the end of the year while the Model X will have margins around 25 percent.

Expenses continue to pile up as the company focuses on Model X production and getting the Model 3 ready for debut. Non-GAAP operating expenses came in at $429 million, up 18 percent from the third quarter. The Model 3’s launch and the continual expansion means Tesla’s expenses are expected to rise 20 percent for 2016.

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  • craigcole

    The shell game continues …