Tesla surpasses earning expectations even as Musk remains mired in lawsuits

Tesla surpassed Wall Street expectations in highly-anticipated fourth-quarter earnings on Wednesday, bumping its stock price up 3% after markets closed.

The electric car company posted $24.3bn in revenue, higher than the $24.07bn anticipated by analysts and 33% growth year-over-year, demonstrating that the automaker may be doing a better job than anticipated of weathering concerns about slipping demand for its cars, logistical holdups, and ongoing legal drama surrounding its chief executive, Elon Musk.

The report comes as Musk faces a number of lawsuits, testifying this week in a case brought against him by Tesla investors who claim his 2018 tweet about taking the company private cost them millions.

Investors have expressed worry that Musk cannot adequately manage the company after taking over Twitter, which has financially floundered under his leadership, but Wednesday’s positive report implies Tesla may ultimately come out on top, said Alyssa Altman of consultancy Publicis Sapient.

“Knowing it will overcome many of the headwinds it has today with Musk eventually stepping away from Twitter in the near-term and a return from the dive into recession, Tesla’s future looks bright,” she said.

To address a backslide in demand, Tesla has been slashing prices on its electric cars by up to 30%, bringing the price of its best-selling Model Y vehicle down to $52,990 – a drop of $13,000.

The company also announced this week plans to expand a manufacturing facility in Nevada and hire 3,000 people as it ramps up production of its heavy-duty, fully electric truck, the Tesla Semi.

All eyes will be on Musk as the executive is anticipated to speak on the company’s earnings call with investors later this afternoon.

More details soon …