Electric Vehicle Market Resources
Tesla Reports Unexpected Profit
October 23 2019 - Tesla Stock Soars As Third-Quarter Results Show Unexpected Profit By Investors Business Daily
Tesla (TSLA) stock jumped Wednesday after the company reported third-quarter results that showed an unexpected profit, with a slight miss on revenue. The Tesla earnings report arrived after the market close.
The electric-car maker reported an adjusted profit of $1.86 a share on revenue of $6.3 billion. Wall Street expected a loss of 45 cents a share on revenue of $6.33 billion. That profit beat sent Tesla stock soaring by nearly 20%, approaching 306, during after-hours trading on the stock market today.
Company officials attributed the swing to profitability in Tesla earnings to a reduction in costs. In a letter to shareholders, the company said operating expenses are at their lowest level since the company started producing its lower-end Model 3 for mass sales in 2017.
"As a result, we returned to GAAP profitability in Q3 while generating positive free cash flow," the letter said. "This was possible by removing substantial cost from our business."
Tesla delivered 97,000 electric vehicles in the quarter, a record high and a 16% yearly gain.
"In Q3, we were able to deliver nearly as many Model 3 vehicles as we were able to produce," Tesla also said in its letter. The company also said it was "highly confident" it could meet its goal of delivering 360,000 vehicles this year.
Tesla Earnings: Revenue Falls First Time In 7 Years
Yet Tesla earnings showed revenue fell 7% from the year-ago period. It's the first quarterly revenue decline for Tesla in seven years.
Analysts expected lower sales and earnings despite the company's achievement of back-to-back record deliveries for the second and third quarters. But many of those were lower-priced and lower-margin Model 3 cars.
"Super proud of Tesla team for great execution & support of Tesla customers greatly appreciated!!" Musk said in a Twitter post after Tesla earnings were released.
Tesla also said trial production of the Model 3 at its Shanghai factory in China has begun. It's producing "full vehicles on a trial basis, from body, to paint and to general assembly," the company said in the letter.
Review Purchase Green Energy Electric Cars
Hybrid and Electric Cars Buying Guide
Invest2Success Investment Advisory Stock Picks
Free Trial - Receive daily low-risk high-reward SP500 NYSE Nasdaq buy-long and short-sell stock picks that are experiencing strong increasing and decreasing earnings, that include buy sell entry, stop-loss, take profit area price targets, and trade management information to your email inbox.
MotiveWave Trading Software Free Trial
Free Elliott Wave Training with a Purchase of the TracknTrade or MotiveWave Trading Software