ETFs To Watch Post Tesla Q4 Earnings Miss

After the closing bell on Wednesday, Tesla Motors (TSLA - Free Report) reported mixed results for the fourth quarter of 2018. Though the electric carmaker missed earnings estimate, it posted a back-to-back quarterly profit for the first time in its history and outpaced estimates on revenues.

Adjusted earnings per share came in at 78 cents, much lower than the Zacks Consensus Estimate of $1.00. The company had incurred a loss of $3.04 per share in the year-ago quarter. Revenues of $7.23 billion edged past the Zacks Consensus Estimate of $7 billion and were higher than the year-ago revenues of $3.29 billion.

Early in January, Tesla revealed that it had produced 86,555 vehicles (61,394 Model 3 and 25,161 Model S and Model X combined) during Q4, up 8% from the all-time record set in the third quarter. It had delivered a total of 90,700 cars, including 63,150 Model 3. Notably, Model 3 became the best-selling passenger car in the United States in terms of revenues in both Q3 and Q4. With nearly 140,000 units sold, Model 3 was also the best-selling premium vehicle (including SUVs) in the United States in 2018. This was the first time in decades that an American carmaker succeeded in securing the top spot.

Overall, Tesla expects to deliver 360,000-400,000 vehicles in 2019, indicating growth of 45-65% from 2018. It expects its Model 3 production to reach a "sustained rate" of 7,000 vehicles a week by the end of the year. The company hopes to produce 500,000 vehicles a year in China by the last quarter of 2019 and the second quarter of 2020. It also expects to build 3,000 Model 3s per week at the Shanghai factory while production at Tesla's Fremont plant will rise to 7,000 Model 3s per week by the year-end.

Though Tesla is optimistic that it will be able to post a profit in the first quarter, it has warned of challenges such as logistics and global deliveries of its new Model 3.

The earnings miss pushed down shares of Tesla by more than 4% in aftermarket trading. The stock currently has a Zacks Rank #3 (Hold) and a VGM Score of C. It falls under a top-ranked Zacks industry (top 31%).

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