Tesla (NASDAQ:TSLA) announced its latest quarterly earnings results after the bell Wednesday, bringing in results that largely underwhelmed as its loss was several times wider than expected and revenue missed the mark, but TSLA stock increased as the company had previously warned that delivery volumes would miss expectations.
The San Carlos, Calif.-based electric car maker said that for its first three months of its fiscal 2019, it brought in a loss of $2.90 per share on an adjusted basis, wider than the 69 cents per share that analysts predicted. Revenue tallied up to 4.54 billion, below the $5.19 billion that the Wall Street guidance called for.
Tesla had previously indicated that its first-quarter income would be impacted negatively due to “lower than expected delivery volumes and several pricing adjustments. The company said earlier in April that it delivered 63,000 cars during the period, below the 76,000 that analysts predicted.
This miss was partially caused by a $7,500 federal tax credit paid to buyers of its electric cars being cut in half on Jan. 1, decreasing demand during the quarter. When looking at Tesla’s earnings on an unadjusted basis, the company posted a loss of $4.10 per share, below the profit of 78 cents per share from the first quarter of its fiscal 2018.
Investors have concerns about the electric car manufacturer’s ability to make the Model 3 profitable overseas as the company has made a number of price changes to it. The business temporarily reduced the price of the vehicle to $35,000 as a follow-up to the company’s promise, but it increased prices soon after.
TSLA stock is up roughly 1.2% after the bell off the heels of the company’s results. Shares had been down about 2% during regular trading hours in anticipation of the company’s results.