Tesla investors hoping fourth quarter results can justify recent stratospheric share price leap

Tesla Inc (NASDAQ:TSLA) will deliver its fourth quarter results after the New York market close on Wednesday, with investors in the electric vehicles maker hoping the numbers can justify a recent stratospheric leap in the firm’s share price. Shares in Tesla have jumped by around 120% since the company last posted earnings in October, hitting a valuation of $100bn, primarily on the company’s outlook in China. READ: Tesla value tops $100bn setting Elon Musk up for US$346mln pay day The company started delivering cars from a new vehicle factory in Shanghai in January, and investors will be keen for any comment on the impact the current coronavirus outbreak in the country could have on the firm’s operations. Tesla has already reported record deliveries during the fourth quarter of 112,000 vehicles globally, significantly above Wall Street estimates and the low-end of the company’s year-end sales goal. Consensus expectations are for Tesla to report non-GAAP earnings per share of $1.72 and revenue of $7.02 billion, according to a survey of analysts by Refinitiv. Roth Capital repeats ‘sell’ In a preview note, analysts at Roth Capital pointed out: “It is well understood Tesla will report an impressive 4Q19 result after disclosure of 112k deliveries against 105k in production. “The 7k units sold out of the channel should drive a ~$350m benefit to cash flows, stronger margins, and higher earnings vs. 3Q19 levels.” But, they added: “With the $100bn mkt cap, we estimate this implies expectations of a 550k-600k 2020 deliveries guide, vs our current 460k estimate. Reiterate Sell, as we see outsize risk to Tesla executing on a chunky guide.”