Tesla shares slide 8% on weaker-than-expected profits

January 27, 2021, 9:42 PM UTC

Tesla reported a lower-than-expected sixth consecutive quarter of profit, sending its shares sliding in postmarket trading.

The Palo Alto, California-based company reported a fourth quarter profit of 80 cents a share Wednesday on an adjusted basis, falling short of analysts’ consensus estimate for $1.03 and well below the blowout $2.14 of a year ago.

Tesla fell as much as 7.6% as of 4:15 p.m. in New York on Wednesday after closing down 2.1% to $864.167.

Despite missing analyst estimates, the results cap a remarkable year for Tesla. The company has defied skeptics by achieving sustained income growth and been rewarded with a record stock price and placement on the S&P 500 Index. Its success has helped spur a rally in shares of other companies with electric-vehicle strategies, both old and new.Tesla’s revenue hit $10.74 billion in the October to December period, surpassing analysts’ estimate for $10.38 billion and exceeding the $7.38 billion in the last quarter of 2019.

The carmaker did not provide guidance on projected 2021 vehicle deliveries. Last year, it delivered almost 500,000 vehicles globally.

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