NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) - Get Tesla Inc Report are dropping 4.01% to $230.38 at the start of trading on Monday as the company hit the low end of its goal to deliver 50,000 vehicles for the year.
Tesla shipped 17,400 cars in the fourth quarter, Bloomberg reported. The automobile maker delivered 50,580 Model S sedans and Model X sport utility vehicles in 2015, according to a statement, Bloomberg noted.
The company revised its estimates in November to 50,000 to 52,000 deliveries. Tesla had previously predicted 55,000 in a letter to shareholders in February. Projections changed during the year as the company struggled with building more than one vehicle and a steep production ramp, Bloomberg noted.
"It's good news," Ben Kallo, an analyst with Robert W. Baird who rates the shares as "neutral," said in an interview with Bloomberg. "They hit within their guidance. The X number is lower than some expectations, but production has picked up nicely."
Additionally, world markets are pressured today from a sharp sell-off in Chinese stocks as China's Shanghai Composite dropped 6.8% and the Shenzhen Composite plummeted more than 8%, CNBC.com reports.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TESLA MOTORS INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TSLA's revenue growth has slightly outpaced the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 36.49% is the gross profit margin for TESLA MOTORS INC which we consider to be strong. Regardless of TSLA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TSLA's net profit margin of -24.53% significantly underperformed when compared to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Automobiles industry and the overall market, TESLA MOTORS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$203.34 million or 626.31% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: TSLA