Tesla shares drop after posting 4Q results. On Wednesday, Tesla revealed its better-than-expected sales, but the company’s fourth-quarter earnings missed analysts’ expectations.
CEO Elon Musk announced the retirement of Chief Financial Officer Deepak Ahuja as well as a big change to the company’s executive ranks. Musk said that Zach Kirkhorn, who worked as the company’s vice president of finance is replacing Ahuja. The stock of Tesla drops by about 5 percent in after-hours trading.
Officials said that in 2019, the company will focus on cutting costs, shipping more cars before additional tariffs impose, improving quality of service in North America and running Tesla’s Shanghai factory.
The company posted adjusted earnings per share of $1.93 on revenue of $7.23 billion, compared to Refinitiv’s estimates of $2.20 on revenue of $7.08 billion. Tesla now aiming to deliver 360,000 to 400,000 vehicle, expecting higher revenues in 2019.
“That 360,000 to 400,000 vehicles is within the band of what the street was expecting, and I think there were fears that would be significantly worse given what we saw in North America with the EV tax credit,” an analyst at Wedbush Dan Ives said.
The company expects 50 percent growth of its deliveries in 2019 with an improved cash position of $1.45 billion. At the beginning of the year, the tax credit was reduced by half to $3,750 on each Tesla vehicle sold.
“Turning a profit, creatively addressing production challenges and getting the Model 3 to the masses were huge milestones, but keeping up this momentum is going to be virtually impossible,” said Jessica Caldwell, Edmunds’ executive director of industry analysis.