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Tesla profit, vague vehicle delivery forecast disappoint Wall Street

Investors had hoped for a significant increase over the company's 2020 delivery goal of half a million vehicles, but Tesla provided only a vague outlook and did not state a concrete delivery goal.

Topics
Tesla | Elon Musk | Wall Street

Akanksha Rana & Tina Bellon | Reuters 

Photo: Reuters
The company delivered 180,570 vehicles during the fourth quarter, a quarterly record, even though it narrowly missed its ambitious 2020 goal of half a million deliveries

Inc's fourth-quarter profit fell short of expectations on Wednesday and the company failed to provide a clear target for 2021 vehicle deliveries, sending shares down 3% in extended trade.

The disappointing results capped an otherwise stellar 2020 for the electric carmaker led by CEO Elon Musk, with shares surging nearly 700% over the past 12 months, making it the world's most valuable automaker.

Investors had hoped for a significant increase over the company's 2020 delivery goal of half a million vehicles, but provided only a vague outlook and did not state a concrete delivery goal.

"Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. In some years we may grow faster, which we expect to be the case in 2021," Tesla said in a statement.

ALSO READ: Apple tops Wall Street expectations on record iPhone revenue, stock gains

The company delivered 180,570 vehicles during the fourth quarter, a quarterly record, even though it narrowly missed its ambitious 2020 goal of half a million deliveries.

Net income excluding share-based compensation payouts to Musk rose to $903 million from $386 million last year, falling short of average analyst expectations for a $1.08 billion quarterly profit, according to data from Refinitiv.

At $10.74 billion, Tesla quarterly revenue slightly surpassed analyst expectations of $10.4 billion.

Under Musk's leadership, Tesla significantly expanded its footprint in 2020, bucking a pandemic and economic upheaval with steady sales and profitable quarters and defying long-term skeptics who had bet against the company.

But within the auto industry, the race is now on to develop to meet emissions targets and challenge Tesla's market lead.

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First Published: Thu, January 28 2021. 03:47 IST
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