Rich’s new year resolution for 2020 is to help his community members diversify their portfolios. To accomplish this, he’s started profiling more companies outside of the cannabis space. While many of his profiles look at up-and-coming companies and read-to-move penny stocks, he also monitors some of the biggest stocks out there, like Tesla Inc. (NASDAQ:TSLA).
Elon Musk’s electric vehicle maker just reported some major news. This means that now is a great time to look into the opportunity presented by TSLA stock.
On the first day of the new year, Rich chose Tesla as his number one pick of January 2020. His confidence in the stock has paid off in a big way, so let’s take a look.
Tesla Beats 4th Quarter Estimates
After the market closed yesterday, Tesla revealed its fourth-quarter and full-year earnings for fiscal 2019.
Revenue for the quarter came out to $7.38 billion, marking 2% year-over-year growth. Net income, however, was $105 million, a 25% decrease from the 2018’s fourth quarter.
GAAP earnings per share came to $0.58, representing a 28% dip from the prior year, while non-GAAP adjusted earnings per share increased 7% to come to $2.14. Analysts had expected revenue of $7.1 billion and non-GAAP earnings per share of $1.74.
For the full year, revenue was $24.57 billion, compared to $21.46 billion in 2018. The company’s net loss of $862 million also compares favorably to the 2018 net loss of $976 million.
The good news caused TSLA to jump 11% within 24-hours, from $580 to $644. This continues the momentum that Tesla has had since June last year. Back then, shares were trading at $185. The stock has jumped 247% in the seven months since then.
With only a few exceptions, the company has posted net losses since it was founded. Many investors and analysts—as well as Tesla itself—consider 2019 an important turning point for the company.
As a leader of the luxury electric vehicle market, Tesla was under pressure to transition from its development phase to profitability. Fortunately, its Q3 profit of $143 million boosted confidence, and now the company has posted its first-ever back-to-back profits.
“Elon Musk is a genius, and I like to follow geniuses,” says Rich. “These guys are breaking records. I’m not saying they can’t dip down, but I think they’re going to melt up.”
According to the Wall Street Journal, the company is on its way to producing its next car—the Model Y compact sport-utility vehicle. It also reiterated that this year, production should begin on the Semi, an all-electric semitrailer truck. First deliveries of the Model Y are due before April 2020, with the Semi expected sometime in 2021.
This year, Tesla plans to deliver more than 500,000 vehicles globally, up from 367,000 in 2019. That goal relies heavily on a greater output from its newly opened assembly plant in China.
“I predict that they will go all the way to $1,000 per share,” says Rich. “They’ve got a tight share structure and they’re changing the world. I’m a big fan of Tesla.”
What do you think? Is Tesla the future of the electric vehicles market? Let us know your thoughts on this and any other stocks from RichTV Live.
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