The low price of fuel may also be a factor in the demand for Tesla’s Model S electric car, and only model for now. So far in 2015, U.S. sales are on pace, while in China, the cars are stuck in park.
Tesla (IW 500/384) reported fourth-quarter numbers, coming in well below estimates for both earnings and revenue.
The company said it made $1.1 billion, equaling a loss of 13 cents a share. Optimistic analysts had predicted earnings of $1.23 billion, or 31 cents a share.
Tesla CEO Elon Musk told shareholders, the company powered through Q4, producing 11,142 of its Model S cars to hit the 2014 goal of 35,000. However, the delivery goal was not met with only 9,834 vehicles going to buyers. He said there are another 1400 vehicles that couldn’t be delivered for many reasons, including delays brought on by the West Coast port worker slowdown.
Musk blamed the financial miss on the lack of deliveries, the strong dollar hurting U.S. exports and “one-time manufacturing inefficiencies.”
The low price of fuel may also be a factor in the demand for Tesla’s Model S electric car, and only model for now. So far in 2015, U.S. sales are on pace, while in China, it only sold 120 cars in January.
According to Reuters, the disappointing numbers in China led to a reprimand of managers who were put on notice for the poor performance. It also led to speculation of the company’s ability to grow in foreign markets.
Despite the 2014 shortfalls, Musk remains positive for 2015. The company will debut a new vehicle later in the year, the Model X Crossover, and says it expects to sell 55,000 Model X and Model S vehicles for the year. It also said it would be raising prices in foreign markets.
Musk told investors he’s looking to return to positive cash flow in 2015, and for now, doesn’t see the need to raise additional funds. And he made a bold prediction, saying the company could match Apple’s current market value of $700 billion by 2025.