Tesla’s net profit and revenue up in Q4

Tesla Inc said on Wednesday that it turned a profit in the fourth quarter of 2019 and was ahead of schedule on its latest model, offering renewed confidence as it enters what could be a pivotal year.

The electric-car maker reported $105 million in net income for the quarter, down from the $143 million in the previous quarter.

The numbers suggest that Tesla has overcome the problems that plagued it in the first half of last year, when it lost more than $1 billion and scrambled to raise capital.

Tesla, which has never had a profitable year, ended 2019 with a loss of $862 million, less than its two previous annual losses.

Revenue was $7.4 billion in the fourth quarter, the company said, up from $6.3 billion in the third quarter. It said it expected to “comfortably exceed” 500,000 vehicle deliveries this year, about a third more than in 2019.

Tesla also said it had begun ramping up production of the Model Y at its factory in Fremont, California, with deliveries expected by the end of March, well ahead of a previous estimate for the fall.

In a call with analysts after the results were released, Elon Musk, Tesla’s chief executive officer, said that he was confident the vehicle would find buyers and that the company was focused on building out supply.

“We’re not too worried about demand,” he said. “We’re worried about production.”

Tesla’s global push isn’t without its risks.

Production at the Shanghai factory is expected to be delayed by as much as a week and a half because of an official shutdown that has affected many businesses in response to the spread of the coronavirus, Tesla’s chief financial officer, Zach Kirkhorn, told analysts.

Tesla said it expected to remain profitable going forward, “with possible temporary exceptions.”

It ended 2019 with $6.3 billion in cash and cash equivalents, a 70% increase from the year before.

In addition to overseas growth, Tesla’s success this year is likely to be defined by the rollout of the Model Y, which will have an estimated range of 315 miles per charge, up from a previous estimate of 280 miles.

The introduction of the relatively affordable Model 3 last year led Tesla to a record number of deliveries in the fourth quarter, accounting for about 80% of vehicles sold in that period.