Dubai, United Arab Emirates (CNN) – “Tesla” company ended its “extraordinary” year with record profits, but did not meet analysts’ expectations, which led to a decline in its shares in post-closing trading.
The electric car maker reported an adjusted income for the fourth quarter of $ 903 million, excluding special items, more than double its profits a year ago, but less than the $ 1.1 billion analysts expected. The company’s net income was $ 270 million, well below the $ 780 million Wall Street estimated.
The company reported quarterly revenue of $ 10.7 billion, up 46% from the previous year, which, unlike the earnings numbers, beat Wall Street expectations.
Despite this, there is no doubt that the results concluded a year of strong growth for the company despite all the challenges posed by the Corona pandemic, from the closure of cities and factories that caused a global recession that slowed car sales in general.
Revenue is up 31% for the year, and adjusted income is up by more than 6,700% from the modest profit Tesla made on this basis in 2019, the carmaker’s first profitable year.
Net income for 2020 was $ 721 million, compared to a net loss of $ 862 million in the previous year.
“The year 2020 was a decisive year for us on many levels,” said CEO Elon Musk. “Despite the challenging environment … we delivered a number of cars last year that is close to the number of cars we have produced in our entire history.”
The company also provided a bullish outlook for the future, as it expected that it would be able to achieve sales growth of 50% or better annually, and it expects 2021 to be one of those years in which it tops this goal.
Tesla opened its second auto plant in Shanghai in late 2019 and is in the process of building new plants near Berlin, Germany, and Austin, Texas.
The company’s sales for 2020, which amounted to around 500,000 cars, are a small fraction of that of other popular automakers. Volkswagen, for example, the industry leader, sold 9.3 million cars last year. However, well-known car manufacturers such as Volkswagen and General Motors are still striving to shift production from conventional gasoline-powered cars to electric cars.