Charged: Tesla Reports First Profit Miss In Over A Year

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Tesla Results

On Wednesday, Jan. 27, Tesla (TSLA) reported fourth quarter non-GAAP earnings per share of 80 cents and revenue of $10.74 billion, with consensus at $1.01 and $10.32 billion, respectively. The company also stated: 

"While 2020 was a critical year for Tesla, we believe that 2021 will be even more important... We are planning to grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. In some years we may grow faster, which we expect to be the case in 2021.

"The rate of growth will depend on our equipment capacity, operational efficiency and capacity and stability of the supply chain. We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans, and other expenses. We expect our operating margin will continue to grow over time, continuing to reach industry-leading levels with capacity expansion and localization plans underway."

Moving To Sidelines On Valuation

On Thursday, Jan. 28, JMP Securities analyst Joseph Osha downgraded Tesla to Market Perform from Outperform. The stock looks "fairly valued" even though the company showed a "very nice looking" Model S update and its "hard-to-forecast" emissions credit sales exceeded expectations, the analyst told investors.

Osha further stated that while the fiscal year 2021 unit outlook for Tesla is higher, he cannot justify higher target multiples than 7-times revenue and 35-times EBITDA.

Lordstown Builds To Begin Next Month

Lordstown Motors (RIDE) said it remains on track to begin production of the Lordstown Endurance, which is anticipated to be the world's first mass produced full-size all-electric pickup truck, this year.

"We are hard at work in the factory preparing to begin Beta builds in the coming weeks," remarked Steve Burns, CEO of Lordstown. "With this step on the horizon, we remain on track to meet our September start-of-production timeline while continuing to see indicators of strong demand for an all-wheel drive, full-size electric pickup truck with 250 miles of range from commercial, government, and military fleets."

The Lordstown Motors Electric Van is in development with plans to be unveiled in June and production starting in the second half of 2022. Based on the Endurance platform, the van will utilize hub motors to achieve all-wheel drive and low ground clearance, and have a class-leading range. An initial use case of the van will be as the world's first production all-electric RV, produced in partnership with Camping World (CWH), the company said.

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