Tesla Posts Mixed Q3 Results: Revenue Falls Short, But Earnings Beat Expectations
Tesla Inc. (TSLA) reported its third-quarter financial results on Wednesday, revealing a mixed bag of news for investors. While revenue came in slightly below analysts’ estimates, the company delivered a strong earnings per share performance, showcasing the company’s continuing focus on profitability.
Key Highlights:
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Revenue:
Tesla reported $25.18 billion in revenue for the third quarter, marking an 8% year-over-year increase. However, this figure fell short of the $25.37 billion consensus estimate from analysts. The company attributed the revenue shortfall to a combination of factors, including the impact of lower average selling prices for vehicles, despite growth in vehicle deliveries, energy generation, and full self-driving revenue.*
Earnings:
Despite the revenue miss, Tesla exceeded earnings expectations, reporting earnings per share of 72 cents. This comfortably beat the Street consensus estimate of 58 cents per share, demonstrating the company’s ability to manage costs and maintain strong profitability.*
Production and Deliveries:
Tesla reported a notable increase in both production and deliveries during the quarter. The company produced 469,796 units, representing a 9.1% year-over-year and 14.4% quarter-over-quarter increase. Deliveries reached 462,890 units, marking a 6.4% year-over-year and 4.3% quarter-over-quarter growth. This robust production and delivery performance reinforces Tesla’s position as a leader in the electric vehicle market.*
Cybertruck Milestone:
Tesla achieved a significant milestone with its Cybertruck, reporting that production has increased sequentially and the vehicle achieved a positive gross margin for the first time. This signals progress in ramping up production of the highly anticipated electric pickup truck, which is expected to significantly contribute to Tesla’s future revenue growth.*
Future Outlook:
Despite the ongoing macroeconomic challenges, Tesla expressed confidence in its future growth trajectory. The company stated its expectation for slight growth in vehicle deliveries in 2024, and emphasized its commitment to expanding its vehicle and energy product lineup. Tesla also highlighted its strong liquidity position, assuring investors of its ability to fund its ambitious product roadmap.Focus on Affordability and Future Growth:
Tesla reiterated its plans to introduce more affordable models in the first half of 2025, potentially expanding its market reach to a broader customer base. The company also confirmed that its Semi factory remains on track for production to begin by the end of 2025. In terms of its long-term vision, Tesla highlighted its strategy of capitalizing on two major growth waves: the existing Model 3/Y platform and the upcoming next-generation vehicle platform.
Market Reaction:
Tesla stock reacted positively to the earnings announcement, rising by 8% in after-hours trading, reaching $230.50. This indicates investor confidence in Tesla’s ability to navigate the current economic environment and maintain its position as a leader in the electric vehicle industry.
