The Financier The Financier | Page 19

Tesla’s market cap is around 94.6 billion USD, which highly higher than its competitors General Motors and Ford. Its share price is being on a tear this quarter after the firm surprised the market by announcing about its profit on last October, back then the share was traded at 250 USD. Tesla has also announced that it delivered 112,000 vehicles in the last quarter to finish out the year, total vehicles for 2019 is 50% higher than 2018 as its reached 367,000 vehicles. Moreover, its CEO said that Tesla plans to open a new design and engineering center in China. CoTesla Inc. is suffering from negative growth in both terms, revenues and net income, however both terms would be improved for in the Q1 2020 albeit from low level. In April 2019, Tesla has reported a vey bad figures but this time it will not be so bad, but not so good as well as the company is facing challenges in United States and European markets due to price competition. Tesla to deliver its units it should compete on the price as there are many new models of cars for too small few buyers. On the conference, Tesla’s CEO said that, there is no plan to raise money as the ability of invest the sources in production lines and factors still available with keeping its cash flow positive. Added that this year will see fast increase in the production of Model Y, and this is related to the battery and the Battery Tesla’s market cap is around 94.6 billion USD On 29th of Jan. 2020, Tesla has announced its earnings for the last quarter of last year, its revenues rose from $6.303 billion in Q3 to $7.384 billion in Q4 last year. However, its net income declined from $0.143 to $0.105 billion as its operating cost has decreased, also its EPS fell from $0.80 to $0.58. mpared the second half of 2019 figures with the second half of 2018s, the revenues, Net Income and EPS have decreased in 2019; where revenues declined by 3 percent, Net Income decreased sharply by 45 percent, and EPS dropped by 48 percent. and the introduction of the next generation of powertrain in Tesla’s vehicles, described as “alien technology”. However, due to Corona Virus the Shanghai Factory will shut down and this will impact Tesla’s Q1 profits “slightly”. Following the mixed report figures, the stock declined by 2 percent to open the session at $ 632.42 due to the concerns over shutting down of Shanghai factory and CEO’s statements. Finally, here’s how the company did versus expectations: Earnings: $2.14 adjusted vs. $1.72 per share expected. Revenue: $7.38 billion versus $7.02 billion, expected according to Refinitiv. However, the share is expected to continue its uptrend as the revenues is expected to keep rising and the production growth of Model Y.