Tesla disappoints Wall Street despite strong gains

The electric carmaker reported adjusted revenue of $ 903 million in the fourth quarter, excluding specialty items, more than doubling its earnings a year ago, but less than the $ 1.1 billion forecast by analysts. Net income was $ 270 million, less than the $ 780 million estimated by Wall Street.

Nevertheless, the results limited a year of strong growth for the company, despite the problems associated with the temporary closure of Covid-19 and a global recession that slowed car sales in general. Revenue increased by 31% for the year, and adjusted revenue increased by more than 6,700% of the modest profit that Tesla made in 2019, the first profitable year of the automaker. Net income for 2020 was $ 721 million, compared to a loss of $ 862 million a year earlier.

Despite the positive results, the shares of Tesla (TSLA) fell by 6% in post-trading shortly after the report. Shareholders had a 743% rise in the share price in 2020 and a 25% rise to date until the end of Wednesday, making it by far the most valuable carmaker in the world. Tesla is worth more than the ten largest carmakers combined, and is now one of the most valuable American companies of any kind.

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