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Tesla whiffs on earnings

Feb 11, 2016, 02:34 IST

REUTERS/Stephen Lam

Tesla is reporting fourth-quarter earnings results on Wednesday afternoon.

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The electric-car manufacturer posted an adjusted loss per share of $0.87, and revenues of $1.75 billion.

Tesla had been expected to post adjusted earnings per share (EPS) of $0.10, with revenues of $1.81 billion, according to analyst estimates on Bloomberg.

Shares have fallen 34% over the past year, and 40% year-to-date. Analysts have been concerned about production delays on new models, about the company's ability to hit its production targets, and whether consumers will buy the pricey cars.

Morgan Stanley's Adam Jonas, who is one of the most bullish analysts on the company, cut his price target on Tesla's stock last week by 26% to $333, writing that his expectations for the Model X SUV and Model 3 volumes had fallen.

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In all, it's been a painful year for CEO Elon Musk's companies, as BI's Linette Lopez noted. Shares of Solar City, the residential power company he founded, tanked as much as 28% Wednesday after the company missed on earnings.

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