Tesla Expects FY19 Vehicle Deliveries To Rise Approx. 45% To 65%

(RTTNews) - Tesla, Inc. (TSLA) announced the company is expecting to deliver 360,000 to 400,000 vehicles in 2019, representing a growth of approximately 45% to 65% compared to 2018. In this range, the company expects positive GAAP net income and to generate positive free cash flow in every quarter beyond first quarter, 2019. The company said these results will be substantially driven by its restructuring action and the ongoing financial discipline. For 2019, Tesla projects full-year Model 3 volumes will grow substantially over 2018 due to a full year of high production rates at its Fremont facility.

Tesla expects that the restructuring actions taken in first-quarter will reduce its costs by about $400 million annually. First-quarter financials will reflect a one-time restructuring cost. The gap between production and deliveries in the first quarter will create a temporary but predictable dip in the company's revenues and earnings. As a result, the company said the optimistic target is to achieve a very small GAAP net income in its first quarter.

With nearly 140,000 units sold, Model 3 was the best-selling premium vehicle (including SUVs) in the US for 2018, Tesla stated. In fourth quarter, the company delivered 63,359 Model 3 vehicles to customers in North America. For the full year, Tesla delivered 99,475 Model S and Model X vehicles, which was in line with its guidance. In fourth-quarter, the company delivered 27,607 Model S and Model X vehicles to customers.

For the fourth-quarter, earnings per share was $0.78 compared to a loss of $4.01 per share, previous year. Non-GAAP earnings per share was $1.93 compared to a loss of $3.04 per share. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $2.19 for the quarter. Analysts' estimates typically exclude special items.

Fourth-quarter total revenue were $7.23 billion compared to $3.29 billion, a year ago. Analysts expected revenue of $7.07 billion for the quarter.