After the market on January 29, Tesla disclosed its fourth quarter results, and its revenue was significantly higher than expected. Tesla rose 11% after the market, and its stock price exceeded $ 600, setting a new record high. Behind this proud achievement is inseparable from the contribution of the Chinese market and the Shanghai factory. However, in the face of the epidemic, can Tesla continue its growth story?
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After the market on January 29, Tesla disclosed its fourth-quarter results, and its revenue was significantly higher than expected. Tesla rose 11% after the market, and its stock price exceeded $ 600, setting a new record high. Behind this proud achievement is inseparable from the contribution of the Chinese market and the Shanghai factory. However, in the face of the epidemic, can Tesla continue its growth story?
Revenue hits record high, and delivery vehicles exceed expectations
Tesla ’s total revenue for the fourth quarter was US $ 7,384 million, an increase of 2% compared to US $ 7,226 million in the same period last year.
In fact, the revenue exceeded expectations was already price-in. It was already known in the Q4 delivery report released in early January. Despite the drop in average selling prices, Tesla’s delivery performance far exceeded expectations. Tesla delivered a record 112,000 vehicles in the fourth quarter, 6,000 more than analysts expected. Tesla delivered a total of 367,500 vehicles in 2019, exceeding the previous capacity guidance and up 50% year-on-year.
Inventory turnover fell to 11 days for the first time. According to the average number of days of inventory turnover of passenger car companies in the first half of 2018 of the China Automobile Dealers Association, it was 46.6 days, which greatly outperformed the industry average, reflecting the high sales level of Tesla. The inventory realization speed is high, and Tesla’s 11-day inventory turnover days are even comparable to the iPhone’s inventory turnover.
2 consecutive quarters of profit
Tesla’s net profit attributable to ordinary shareholders in the fourth quarter was US $ 105 million, which has been profitable for two consecutive quarters.
In addition, Tesla’s cash reserves have also increased at a rate that is visible to the naked eye. In the fourth quarter, Tesla’s cash equivalent reserves reached 6.268 billion US dollars, operating cash flow reached 1.425 billion US dollars, and free cash flow reached 1.013 billion US dollars.
Good news comes out
As we all know, Tesla’s Shanghai plant has completed the delivery of the first Model 3. At present, the Shanghai plant’s output can reach 28 units per hour, with a daily start-up time of 10 hours, and the current weekly output exceeds 1,000 units. Tesla said, “In our new plant in China, we have demonstrated a production capacity of more than 3,000 units per week, excluding local battery pack production starting in late December.” Tesla expects the Shanghai plant to exceed 15 Ten thousand cars.
Tesla also said in its financial report that the Model Y electric vehicle has been put into production in advance at the Fremont plant in California, and the plant will begin delivering Model Y by the end of the first quarter of 2020. Including the Model 3, the annual production capacity of the two models at the Fremont plant is expected to reach 400,000 units.
In the fourth quarter, Tesla can be said to be much better than expected. Both revenue, net profit and cash flow have performed well. The increase in the after-hours just shows investors’ recognition of Tesla. I believe many Investors want to take a look at the reasons behind Tesla’s “high-speed growth”. The Tiger Securities investment research team will analyze them one by one.
The reason for the great financial report
Let’s talk about the reason for the surge in revenue——China
Tiger Securities investment research team believes that unlike Weilai ’s financing problem, it has always restricted special features.