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Elon Musk’s electric car company Tesla failed to meet expectations on first-quarter earnings as the demand for Tesla vehicles appeared to sharply drop. The company lost more than $700 million in the first three months of 2019.
CNBC reports that Tesla reported revenue for the first quarter of $4.54 billion, missing the expected projection of $5.19 billion. CNBC notes that this wider-than-expected loss appears to be due to a drop in demand for electric cars following the loss of a valuable tax credit for buyers on January 1.
Estimates - Refinitiv - Tesla - Analysts
Based on average estimates compiled by Refinitiv, here’s what Tesla reported versus what analysts expected:
Tesla essentially lost $702.1 million of $4.10 per share during the first quarter which ended on March 31. During the same time frame last year, Tesla lost $709.6 million or $4.19 per share. Tesla shares were down by two percent at the time of the market close on Wednesday, trading remained flat after markets closed.
Tesla - Company - Quarter - Income - Delivery
Tesla did appear to be aware that the company was going to face a tough first quarter, however, warning that income would be “negatively impacted” due to “lower than expected delivery volumes and several pricing adjustments.” Investors being prepared for the company’s poor performance may explain the flat trading following the market close.
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