Tesla announced its fourth-quarter earnings this week and unfortunately their earnings fell short of analysts’ expectations and sent its shares south after the markets closed.Tesla’s shares fell by 5 percent after the announcement was made.
The decline in profit was caused by their automotive segment was less profitable than some had expected. This is the first loss the company has incurred since it went public in 2010. Tesla has reported back-to-back profitable results since then.
Tesla founder Elon Musk said last year that he expected Tesla to be sustainably profitable beginning in the third quarter of 2018 but unfortunately his dream didn’t come to fruition.The company blamed the China-America trade war on their decline in profit citing a decline in revenue from higher import duties on parts from China.
Mr Musk said,”The company should see higher revenues in 2019 as it substantially ramps up production and deliveries this year aiming for 360,000 to 400,000 vehicle deliveries about 45 to 65 percent more than its deliveries in 2018. Musk has predicted its deliveries will grow 50 percent in 2019 even if there is a recession.”
Executives said the company’s main priorities in 2019 include reducing costs, shipping as many cars as possible until more tariffs hit, getting Tesla’s Shanghai factory running and improving service in North America.