TOM KRISHER AP Auto Writer
DETROIT (AP) — Record electric vehicle sales in the fourth quarter helped to push Tesla Inc. to its second-straight quarterly profit, giving bullish investors optimism that sustained black ink lies ahead.
The Palo Alto, California, company said it made a net profit of $105 million from October through December, or 58 cents per share but still posted an annual loss of $862 million.
The fourth-quarter earnings almost certainly will continue Tesla’s meteoric stock appreciation. Shares rose about 12 % in after-hours trading Wednesday to $648.
The company said in its quarterly investor letter that it expects to “comfortably” exceed production of 500,000 vehicles at its factories in Fremont, California, and Shanghai.
It expects net profits going forward, with possible some possible exceptions at times surrounding the launch of new products.
“We continue to believe our business has grown to the point of being self-funding,” the investor letter said.
Tesla said the production ramp-up of the Model Y SUV, a key product for the company, has started ahead of schedule in Fremont. Model Y production in Shanghai will start in 2021. The company also said it plans to start producing limited numbers of its electric semi truck this year.
Tesla shares have more than tripled in value since May of last year, pushing the company’s market value above giant German automaker Volkswagen as well as the combined values of General Motors and Ford.
The electric vehicle and solar panel maker's fourth-quarter revenue grew 2% to $7.38 billion as Tesla delivered about 112,000 vehicles during the period and a record 367,500 for the full year.
Fourth-quarter revenue figures beat Wall Street estimates of $6.99 billion, but net income fell short of the $152.4 million expected by analysts polled by FactSet.
Australia's government announced regulations for buy now, pay later services, which will be labeled as consumer credit products, which puts them under the country's Securities and Investments Commission's watch.
Walmart is reportedly teaming up with pet telehealth provider Pawp, giving subscribers unlimited access to vet services via video and text, starting on Tuesday.
Cheddar News checks in to see what's on The Day Ahead, which will include earnings from Lowe's, Dick's Sporting Goods, BJ's and AutoZone along with new home sales data. In addition, Microsoft's Build 2023 Developer Conference is slated to kick off for software engineers and web developers.
Amazon will use a new feature in its palm-scanning system to verify one's age to purchase alcohol.
Venmo will soon have accounts for teenagers ages 13-17 but they will have to follow a set of rules, with parents or guardians opening accounts on their behalf under their own accounts.
Rory Harvey, General Motors' incoming North American president, joined Cheddar News to discuss GM's foray into the rapidly-changing electric vehicle market along with what lies ahead. "It's a very dynamic time in the automotive industry," he said. "If you look to the transformation across the EVs, it's happening and it's happening at a pace."
Tesla trimmed prices by offering discounts of around $1,300 for its Model 3 vehicles, continuing price adjustments across its fleet since January.
A new oral weight-loss drug from Pfizer could be more effective than the popular Ozempic injection, based on clinical trial results.
Ford Motor laid out some financial expectations and specific growth objectives for its electric vehicle line at an investors' event on Monday. John Lawler, chief financial officer of Ford Motor Co., joined Cheddar News to explain what lies ahead for the automaker.
Teenagers will officially be allowed to open a Venmo account with their parent's permission, the company said Monday, expanding the popular social payments app to an age demographic that is likely to embrace it almost immediately.
