Tesla Motors, Inc. (NASDAQ: TSLA) shares tumbled by 5.39% by mid-day trading on Thursday. The electric-car maker released disappointing reported earnings after the market close on Wednesday. Numbers were down across the board for the company. Loss per shares were reported as $0.13 in the fourth quarter. Original estimates suggested that the company’s profit for shares would rise $0.32.
The car marker’s losses per share are not their only concern. Investors and market analysts are more concerned with the huge drop in vehicle deliveries in Q4. The company produced 12,000 vehicles during this time with delivery estimates of 11,200 autos. Total deliveries only reached 9,834 vehicles, raising concern for the company’s future.
A conference call with the company stated that Tesla would also increase capital expenditures greatly in the coming year. Poor execution for the company’s sales in China are to blame states Elon Musk.
Investors do have hope that the company will recover. Elon Musk also revealed that the company is expanding outside of the automotive industry. A release was made that states the company will release a new product within 6 months.
The product comes as a surprise for investors and will be a home battery. Musk states that the battery will be used both in a residential and commercial setting. During the company’s earning call, the CTO stated that there will be a revealing of the battery within the next month or two.
Details about the battery are sparse.
During last year’s earning call, Musk stated that the company was working on a stationary battery pack. Initial reports stated the pack would be flat and mounted onto a home’s wall.
A work in progress, the coming months will be interesting for the innovative company. Capital expenditures indicate that the company plans to expand their operations this year in hopes of driving new sales to their automotive sector.