Electric car maker Tesla reported a $114 million loss in the fourth quarter of 2015 on Wednesday. However, the company's share increase in after hours trading.
According to USA Today, Tesla Motors reported Wednesday a whopping loss of $114 million on an adjusted basis in the fourth quarter that badly missed estimates. That loss equals to 87 cents per share, with short on revenue at $1.75 billion, lower than $1.8 billion estimates. Even so, the electric car maker offered reassurances that its production is on track for the year.
Following the announcement, the company's share increased up to 14% in the after hours trading after its plan to book profit in 2016 on an adjusted basis. Tesla plans to deliver around 90,000 cars to customers this year, an increase from 50,000 last year and still relies on Model S sedan and Model X crossover.
Tesla is also optimistic to achieve a positive cash flow starting next month and to get profit in this year with the Model X which accompanies the previous model. Nevertheless, shareholders noted that only 206 cars were delivered in fourth quarter 2015 from 17,478 vehicles delivered in that quarter.
CEO Elon Musk admitted the note as quoted by Ars Technica, "To the degree that we could suppress demand for the X we did our best to do that." Furthermore he added, "we put too many great things all at once into a product. In retrospect, it would have been better to do fewer things with the first version of the Model X… I do think that there was some hubris there with the Model X."
During the announcement, Tesla also mentioned its giant factory built in Nevada to develop battery cells. Panasonic helped Tesla to be able to produce 35GWh of battery cells for the car and for stationary storage batteries as well, which expected to improve Tesla efficiency and maintain its profitability. Chief Technical Officer J.B. Straubel explained that the Gigafactory will be fully operational to build the new batteries, and has begun to develop Powerwall stationary batteries on Gigafactory premises.
According to CNBC, Tesla will plan to deliver 16,000 cars in this quarter, a 60% increase in year over year. The company will push on Model X to take larger share of deliveries, with a 25% margin. While the Model S will be pushed to 30% gross margin by the end of this year.
Although Tesla reported loss in the fourth quarter of 2015, but the company's share increase by 14% in after hours trading on Wednesday. The company is also optimistic to achieve a positive cashflow starting next month and booking profit in this year.
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