Tesla (TSLA) announces Q4 and 2016 financial results: beats on revenue, miss on earnings, and Model 3 on track for July

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After market close today, Tesla released its financial results and shareholders letter for the fourth quarter and full year 2016. Wall Street was expecting revenue of $2.201 billion for the quarter and a loss of $0.13 per share, but the company delivered higher on revenue of $2.284 billion and missed on earnings with a loss of $0.78.

For the full year 2016, revenues were up 73% from 2015 at $7 billion. 

The market is responding fairly well despite the earnings miss since cash balance grew $300 million quarter-to-quarter despite the acquisition of SolarCity.

The company has a $3.4 billion cash position, which will be useful since Tesla now says that it plans to invest between $2 billion and $2.5 billion in capital expenditures in the first half of 2017.

They released delivery guidance for the first half of 2017, but not for the second half since it will depend on the Model 3 production ramp up:

“We expect to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017, representing vehicle delivery growth of 61% to 71% compared with the same period last year.”

According to the shareholders letter, Model 3 is on track for production to start in July and volume production in September. The company also confirmed having produced new prototypes and even having performed crash tests.

Tesla’s energy storage division deployed 98 MWh of capacity during the quarter while SolarCity, now under ‘Tesla Energy’, deployed 201 MW of solar energy generation.

The company warned that while they don’t plan to need to raise money, they could still go to the market in order to reduce risk.

Here are our follow-up posts about the earnings to expand on important points:

Here’s the shareholder letter in full:

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