The company reports that it made $105 million net income during Q4 2019. Even though that's down from $143 million from the quarter before it, investors were excited and the company's stock rose 12%.
These profits also suggest that the issues Tesla ran into during the first part of the year, where it lost over $1 billion, were addressed.
Even with these recent profits, Tesla has yet to have a profitable year as 2019 finished with an overall loss of $862 million.
Revenue reached $7.4 billion during Q4 which was up from $6.3 billion in Q3. The company also expects to "comfortably exceed" over 500,000 vehicles delivered during this year.
Tesla has also started to increase its production for its Model Y at its California factory and expects to begin delivering the car in March. This would beat the company's original fall estimate. While discussing the numbers on a conference call Elon Musk stated that he is confident the new model will find plenty of buyers and the company will be working on its supply.
“We’re not too worried about demand,” he said. “We’re worried about production.”
After this positive news, the company's stock ended at a record high. Even with these positive numbers, investors aren't in agreement over the value of Tesla which recently doubled making the company more valuable than Volkswagen, Ford, GM, and other major auto manufacturers. Some believe that Tesla will soon become the major player within the electric vehicle market, but there are concerns about how big the electric car market truly is and how well Tesla can compete with stiff competition.
The company aims to expand its reach worldwide but this strategy rests on its recently opened factory in Shanghai. Tesla also has a factory based near Berlin which establishes a manufacturing effort in the heart of other major car-makers primary markets. The Shanghai location recently began delivery vehicles and the Berlin factory is expected to begin delivering next year.
This worldwide effort isn't as easy as it seems.
The Shanghai factory is experiencing delays after a shutdown was issued due to the recent coronavirus according to Zach Kirkhorn, Tesla's Chief Financial Officer.