Tesla CEO Elon Musk has announced that the electric auto maker's long-serving chief financial officer (CFO), Deepak Ahuja, is leaving the company after over a decade of service, CNBC reports. Tesla's shares fell sharply by almost 5% in after-hours trading. Six analysts surveyed by Zacks expected $7.14 billion.
"Zach's incredibly talented and has made a huge contribution to Tesla over the years", Musk said, adding that his new CFO was "a very well-known quantity to the whole team and has the respect of the whole team". The company warned its results from the current quarter will reflect a "one-time restructuring cost".
Tesla swung to a profit in the third-quarter, fulfilling a promise to do so by the end of 2018.
Tesla shares rose by 3% Wednesday to more than $307 apiece.
If Musk is right, the success of the Model Y will represent a successful next stage for the EV maker, which still has its sights set quite firmly on its goal of upturning the automotive world to reduce carbon emission levels irrevocably.
"Batteries and powertrains will come out and go straight into the vehicle", Musk said, per Wired. That means you can probably expect available all-wheel-drive and a maximum range approaching 300 miles per charge for a couple of thousand more than the equivalent Model 3.
Shares of Tesla were down 1.6 percent in after-hours trade, after ending the regular session Wednesday 3.8 percent higher. The tax credit will be slashed again to $1,875 this summer, shrinking a key incentive for potential electric vehicle buyers. Both markets are considered important growth opportunities for the company.
The company said it plans to produce its Model 3 "at maximum production rates" this year. It added that despite recently introducing a lower-priced mid-range variant and other headwinds, gross margins for the Model 3 "remained stable" in the fourth quarter at more than 20%. In Musk's letter earlier this month, he called past year "the most challenging in Tesla's history". Last quarter, Tesla reported adjusted earnings per share of $2.90 a share, which took analysts by surprise.
In more concrete terms, Tesla is "expecting to deliver 360,000 to 400,000 vehicles" throughout 2019.
Tesla Inc. (TSLA) on Wednesday reported fourth-quarter net income of $139.5 million, after reporting a loss in the same period a year earlier. This projection is slightly behind schedule when compared to Musk's previous commentary in mid-2017, when he had asserted that investors should have "zero" doubt that Model 3 production would hit 10,000 per week in 2018.
Musk told investors that he was cautiously optimistic that the automaker could turn a profit in the first three months of 2019-and could turn a profit for every quarter thereafter.
It may be similar to the Model 3, but Musk said to expect 50 percent higher cost - even double.