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Tesla’s Q4 earnings misses targets: Share prices drop

Tesla’s latest quarterly report was out, leading to a price fall in its shares. The company’s earnings per share were 80 cents, with total revenue of $10.74 billion. There was also an increase in the number of deliveries in the Q4 of 2020. And even though this seems great, and the revenue was more than predicted, the predicted EPS was 90 cents. So, Tesla’s Q4 earnings target was missed by 10%. At the same time, the company also announced about making an Electric van and the delay of Cybertruck.

Tesla’s latest reports

The company is still having a crunch for batteries. Musk very clearly mentioned that they are making their own batteries to keep up with demand and not cut down on buying from suppliers. Even after such demand, why did the EPS of the company didn’t reach expectations? This is because the company’s major sales came from the cheaper Model 3 and Model Y vehicles. And the price of both of which have fallen in the past few months. There is also not much demand for the Model S and X like before.

Tesla's Q4 earnings not as expected

The growth seen by Tesla in 2020 was about 36% in terms of the number of deliveries. At the same time, the company is seeing an average 50% year after year increase in the number of deliveries. But even after such positivity, the share prices of the company fell by 2.1%. Tesla might have soon touched $1000 if the Q4 results were at par with expectations. This is because the shares already made an all-time high of $900.40 on 25th January.

Tesla’s growth and future

The company is rapidly seeing growth in the number of deliveries. This is because of the reducing costs of the vehicles, adoptions of EVs, and at the same time, its entry into new markets. 2021 will also be a great year for the company if they can properly provide in the markets of Indian and Israel. The most important aspect of this is setting up a manufacturing unit to bring down the prices.

As of now, the vehicles’ predicted price in these countries is double compared to the US. And even though enthusiasts will purchase their vehicles, it will not be accessible to everyone because of the huge price. Still, after all that, we are easily looking at about 750,000 deliveries made by the company in 2021. Tesla will also have to focus on beating its competitors in the Chinese markets like Nio and Li Auto that are also releasing great affordable EVs.


What are your thoughts on Tesla’s Q4 earnings? And do you think that the company missed the mark? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.

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