Tesla reported mixed earnings, with the automotive company posting $.80 EPS and $10.74B in revenue, compared to consensus estimates of $1.03 EPS and $10.38B in revenue.

Video Transcript

ADAM SHAPIRO: Tesla's on deck. Jared Blikre, what are they reporting?

JARED BLIKRE: That's right. Tesla's down 6%, and it was a big miss on the bottom line. So here are the numbers. On the top line, revenue came in at a beat, $10.74 billion. The estimate was for lower at $10.38 billion. But the headline number here, fourth quarter adjusted EPS coming in at $0.80. The estimate was for $0.23 higher, $1.03.

A couple of notes here. Their free cash flow position is excellent. They finished with $1.87 billion in the quarter. The estimate was for much lower, $1.04 billion. They are seeing their Capex increase here. It came in at 1.15 billion. Estimate was for lower at 969.9 million.

And I think it's those spending outlays that may be weighing on the stock right now. They're actually ramping up quite quickly. They want to get to a 50% average annual growth rate in vehicle sales over the coming years. And that's going to take a lot of cash.

Also, semi deliveries will begin in 2021. That's another line from the earnings release here. And also, they're going to be building out their Berlin factory as planned. So, in early trading here, after the report where we had that big miss on their bottom line and adjusted EPS, the stock is down about 4 and 1/2%. Guys.

SEANA SMITH: Jared, I'm curious just what you make of the stock's reaction because outside of adjusted earnings per share, where they did miss, it looks like a pretty solid report coming from Tesla, the first time that the company has reported revenue above $10 billion. Do you think that this is just a reflection of the fact that the stock has come so far, so fast, and analysts were-- or not analysts-- investor, shareholders were almost ready to sell if there was anything in this report that disappointed?

JARED BLIKRE: I think so. We use the term a lot on these programs-- priced to perfection. And I think that was the case with Tesla stock. And also, it came on-- these earnings reports are coming on the heels of a bad day in the markets. I mean, we were down the most-- are down the most in about three months here.

And you put it all together, yeah, investors were taking money off the table over the last couple of days and probably going to see some more of that tomorrow. So we'll have to see how all of this shakes out, especially pay attention to the earnings call. But some of these stocks, and especially Tesla, have grown and come so far, so fast that anything short of stellar results probably going to lead to a deeper sell-off here.

ADAM SHAPIRO: Following this, though, why, all of a sudden, are the investors who've been willing to give Tesla a pass for months and months and quarters and quarters now not giving them the pass? Although the stock is still up. I mean, when you look at where it's been since December and since it got put into the S&P 500, it's still up huge.

JARED BLIKRE: Yeah, let's take a look at the YFi Interactive, where I have a couple of charts here. Now this is going to be Tesla over the trailing year, up 674%. Yes, that's an amazing run. So I'm not too worried yet. And this is only a few minutes after the report. What's going to count tomorrow is when the market opens and where it settles. But if we are, in fact, entering a slight correction phase in the general markets, you can bet that some of these high flyers are going to be sold off the most here. Guys.