Following the earnings in the fourth quarter of the company announcement, shares slipped during after-hours trading on the news that Tesla beat the expectations of revenue but missed the earnings.
The California, Palo Alto-based make electric vehicle and clean energy company specializes in the manufacturing, development, and sale of EVs – offering service centers, cars with self-driven capabilities, and supercharge stations – along with battery systems and solar energy generation.
During 2020, TESLA shares were about 700% but with the run-up followed by the earnings miss, most of the investors might be thinking: “Is this the right time to buy TSLA stock?” Before making a decision, it is essential to know everything.
Tesla at a glance
Tesla got famous in front of the public in 2010, offering 13.5 million shares at the rate of $18 per share. Right now, shares trading can be bought at $830 per share.
While this can be the right kind of investment, it has been a difficult road to this point, marked by missed manufacturing deadlines, and controversial comments from Elon Musk itself.
With a market capitalization of about $800 billion, Tesla is known to be the largest automaker by value all over the world. Most of the competitors took some hint from Tesla and manufactured their low-emission and electric automobiles, but Tesla is still on top.
While about a 700% increase in shares is enough for most of the companies, its highlight was Tesla’s inclusion in the S&P 500.
So, where Tesla stands now after the first earnings report?
The organization announced the fourth-quarter of earnings on January 27, where the results were mixed. Tesla stock news states that the revenue grew 47% every year where it leads to $10,75 billion and 24 cents earnings in a share represented a 120% increase over the same period in the prior year.
When adjusted for one-time items, about 80 cents per share was earned by Tesla. The stock was still below the $1.03 per share as the analysts expected, though shareholders will not be pleased to know that this was the sixth quarterly profit of Tesla.
Advantages of buying Tesla stock
The best spot in the most recent earnings of Tesla report was a record-breaking amount of both deliveries and production. In the fourth quarter, about 179,757 vehicles were produced by Tesla, an impressive increase of 72% from the same quarter last year. If we talk about deliveries, about 180,667 vehicles were brand new that got 62% increase year-over-year.
Tesla has the goal of delivering 200,000 vehicles in a year. Even after the disruptions because of the pandemic, the company came nearly close delivering 499,648 over the time of 2020. The Tesla management team believes that it will improve over time, promising an average of 50% in deliveries in the coming future.
For the shareholders, the ride seems to be smooth as the company meets quarterly expectations and is gaining profit. Tesla’s off-chart valuation multiples cannot be ignored by the investors. Tesla has grown to be the largest car company and is now on top in the industry.