Skip to main content

Why Jim Cramer Isn't Worried About the Coronavirus Impacting Tesla

Publish date:
Video Duration:

Tesla reported earnings after the bell Wednesday night. 

The company came in ahead of expectations.

Adjusted earnings per share for the quarter ended December came in at $2.14, beating Wall Street estimates of $1.77 and growing 7% year-over-year. Revenue was $7.384 billion, beating analyst's estimates of $6.99 billion and growing 17%.

The closely watched gross and operating margins came in at 18.8% and 4.9%, respectively. Gross margin beat expectations of 18.7% while operating margin missed estimates of 5.2%. Free cash flow was $1.03 billion, beating estimates of $429 million. 

There were some other impressive takeaways from Tesla's quarter. 

CEO Elon Musk and CFO Zach Kirkhorn announced that Tesla plans to start deliveries for the Model Y crossover by the end of Q1.

When Tesla unveiled the Model Y, it said deliveries would start in the fall of 2020.

And Tesla is upping its Chinese Model 3 production.

In the report, Tesla noted that its goal is to increase Model 3 capacity due to strong initial customer response in China

And it noted that it has already broken ground on the next phase of its Shanghai Gigafactory.

However, Kirkhorn did say that the coronavirus could have an impact on Tesla. 

So, does Jim Cramer thinks that that's enough to pump the brakes for Tesla?

Watch the full video above for his full answer. 

Catch up on the Latest Videos on TheStreet!

Related Videos