Tesla shares rebound ahead of earnings call
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More news: Tesla shares rebounded in after-hours trading on Wall Street, having initially slumped by around 3% after the electric vehicle maker's Q4 earnings release.
Shares surged 3.32% to US$402 ($645.33) by 8:40am AEDT, having closed the day 2.26% lower.
Tesla shares sink as Q4 result misses estimates
The news: Tesla shares tumbled in after-hours trading on Wall Street after the electric vehicle maker's fourth-quarter earnings missed estimates.
The numbers: Elon Musk's company reported adjusted earnings per share of 73 US cents, short of consensus estimates of 75 US cents, according to Bloomberg data.
Operating income of USD1.58 billion ($2.54 billion) for the quarter compared to average forecasts of USD2.68 billion, and marked a 23% drop year over year.
Total revenue of USD25.71 billion was a 2% improvement on the prior corresponding period, while total gross profit lowered 6% to USD4.18 billion.
Tesla shares lowered 2.26% on the Nasdaq ahead of the announcement, and were last down a further 2.88% in after-market trading.
The context: Tesla said the key revenue drivers during the period were growth in "energy generation and storage and services and other", as well as increased vehicle deliveries and higher regulatory credit revenue.
However, the company flagged reduced average selling prices for their Model S, Model 3, Model X and Model Y cars, due to "pricing, attractive financing options and mix".
The car maker said profitability was impacted by the reduced vehicle selling prices, and an increase in operating expenses driven by artificial intelligence and other research and development projects.
The sources: Tesla earnings release, Bloomberg
