Tesla Inc (NASDAQ: TSLA) stock fell over 4.8% on Jan 28th, 2021 pre-market session (Source: Google finance) after the company failed to provide a clear target for 2021 vehicle deliveries, though it posted its first annual net profit in 2020. Tesla delivered 180,570 vehicles during the fourth quarter, a quarterly record, even though it narrowly missed its ambitious 2020 goal of half a million deliveries. Tesla vehicle sales grew 36% last year, but the company fell just short of its annual goal to deliver 500,000 vehicles. The company delivered 499,500 vehicles for the year. The average sales price per vehicle fell 11% on a yearly basis, with more consumers switching to the less expensive Model 3 and Model Y.Net income excluding share-based compensation payouts to Musk rose to $903 million from $386 million last year. The company has generated
Meanwhile, throughout 2020, Tesla had ramped up production in China and last month began selling its locally made Model Y sport utility vehicle there at a price analyst say will disrupt the conventional premium car market. But the company faces growing competition by local challengers, including Nio Inc and Xpeng Inc. Further, the company has also begun building vehicle and battery manufacturing factories near Berlin, Germany, and Austin, Texas, and it remained on track to start deliveries from each location this year.
TSLA in the fourth quarter of FY 20 has reported the adjusted earnings per share of 80 cents, missing the analysts’ estimates for the adjusted earnings per share of $1.08, according to data from Refinitiv. The company had reported the adjusted revenue growth of 46 percent to $10.74 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $10.4 billion. Tesla said that excluding special items, it made $2.24 per share for the year 2020, falling short of Wall Street expectations of $2.45. Full-year revenue was $31.54 billion, beating estimates of $31.1 billion.
Moreover, the operating income had increased in the fourth quarter to $575 million compared to corresponding period last year, which resulted in operating margin of 5.4%.
On the other hand, within the auto industry, the race is now on to develop electric vehicles to meet emissions targets and challenge Tesla’s market lead. Several carmakers are expected to release new EV models this year, including sport utility vehicles to compete with the Model Y, such as Ford Motor Co’s Mustang Mach-E and Volkswagen AG’s ID.4. Challenges to Tesla’s yet-to-be released Cybertruck come from General Motors Co’s electric Hummer truck. Tesla’s Cybertruck volume production would begin in 2022.