Jan 29, 2020

A stronger Tesla returns to the spotlight for Q4 earnings

Photo: Justin Sullivan/Getty Images

Tesla's Q4 earnings report will come Wednesday as the volatile Silicon Valley electric automaker's stock is near all-time highs with a recent run of positive news, including record 2019 deliveries and the recent launch of its Chinese factory.

Why it matters: Tesla is arguably the most important corporate actor in the movement of electric vehicles toward the mainstream, even as new manufacturers emerge and legacy automakers roll out new models.

What we're watching: Morgan Stanley analysts said in a note that big topics on their radar include...

  • Tesla's target for full-year 2020 deliveries, which they expect to be set at 500,000 to 550,000 vehicles but could be higher.
  • Details on this year's planned production and launch of the Model Y, a small SUV.
  • Plans to ramp up production in Shanghai and the status of the planned factory in Germany.

What's next: The company, posted a surprise profit in Q3, "is expected to post an adjusted profit of $1.65 a share in the quarter, according to analysts surveyed by FactSet, compared with an adjusted profit of $1.93 a share a year earlier," the Wall Street Journal writes.

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Tesla declares 2019 a turning point

Elon Musk. Photo: Xinhua News Agency / Contributor/Getty Images

Tesla earned $105 million in net profit in the fourth quarter, ending the year on a positive note and declaring 2019 a turning point for the volatile electric car company.

Details: Record 2019 deliveries helped drive revenues up 19% over the prior quarter, but profit margins fell because Tesla sold more of the lower-priced Model 3. Shares jumped 7% in after-hours trading on Wednesday to $621.89.

Go deeperArrowJan 29, 2020

Tesla's soaring stock raises questions about its future growth

Data: FactSet; Chart: Axios Visuals

That sharp spike you see in Tesla's already-high stock price is what happened Wednesday when the electric automaker reported a $105 million fourth-quarter profit and offered a rosy take on what's ahead.

Why it matters: Tesla and CEO Elon Musk kick up lots of dust, but the bottom line is that the trajectory of the world's largest electric vehicle seller matters a lot for the tech's wider adoption — even as competitors ramp, up too.

Go deeperArrowJan 30, 2020

Tesla shares plummet after wild few days of trading

Source: FactSet; Chart: Axios Visuals

Shares of Tesla closed down more than 17% on Wednesday, shredding more than $27 billion in market cap value.

Between the lines: Wednesday ended a streak of eye-popping stock gains for Tesla. Per CNBC, it was the second-worst day for the stock ever.