AUTO - Tesla Stock Falls as Q3 Revenue Falls Short of Expectations and Flat Margins Cloud Earnings
Despite lower-than-expected third-quarter sales and persistent profit margin difficulties, Tesla is sticking to its full-year production estimate. Tesla stock ( NASDAQ:TSLA ) fell 3.73% in after-hours trading after the results report, indicating a Thursday opening bell price of $213.74 per.
Market Analysis of Tesla Stock
Tesla (TSLA) reported better-than-expected third-quarter results on Wednesday. Still, total sales fell short of Wall Street projections. At the same time, profit margins remained unchanged from the previous period, indicating a tough background for the renewable energy vehicle as the year winds down.
Tesla ( NASDAQ:TSLA ) reported adjusted profits of $1.05 per share for the three months ended September, up over 70% from the same time last year and 5 cents ahead of the Street expectation of $1.00 per share. Group sales increased 56% year on year to $21.45 billion, falling short of analysts’ expectations of $21.96 billion but still far ahead of the $16.94 billion recorded in the second quarter.
Tesla reported gross automotive margins of 27.9%, a 600 basis point decrease from last year and a flat result from the second quarter due to a jump in input prices and expenditures associated with the ramp-up of new plants in Austin and Berlin.
“We continue to concentrate on growing car production as soon as possible by raising our weekly build rate in Fremont and Shanghai and gradually working through the production ramps in Berlin and Texas,” Tesla said in its results presentation. “Logistics unpredictability and...
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