Tesla has reported a profitable quarter and shares rose 3.8 percent during trading hours.
On Wednesday, Tesla was able to present good quarterly profits and good sales numbers. However, earnings were short of expectations. The shares which were up by 3.8 percent on Wednesday, however, fell by 5 percent later, in after-hours trading on the news about the reshuffling of CFO. The announcement was made towards the end of the conference call, after announcing the results.
The company’s CFO Deepak Ahuja is retiring and a new CFO has been appointed. Zach Kirkhorn is the new CFO and he has previously worked as the Tesla’s Vice President of Finance.
Ahuja has been in the company from 2008 to 2015. He again came back in 2017 in place of Jason Wheeler who was the CFO and who resigned suddenly. Ahuja has been in the company for almost 11 years and investors are skeptical after his resignation the second time. The future share prices fell almost 4.5 percent on Thursday after his retirement was announced.
Though the electric car company was less profitable, it was much better than expected. However, earnings declined with high import duties from Chinese parts. The selling price of Model X and Model S in China has been lowered, due to competitive prices, decreasing profits.
The revenue for the fourth quarter at $7.23 billion was much higher than the expected revenue of $7.08 billion. However, earnings were stated at $1.93, which was less than the estimated $2.20 per share.
“Zach has incredible talent and has hugely contributed to Tesla for a number of years”, says CEO Musk. Kirkhorn on his part has said, “Tesla is starting the year 2019, with a strong financial foundation”.
This is the second consecutive time that quarterly results have been good for Tesla and there will be a new CFO at the helm.