Following the bell, Tesla revealed its third-quarter financial figures. Management discussed a wide range of topics on the results call, including macroeconomic concerns and CEO Elon Musk’s anticipated takeover of Twitter.
Following the results, shares dropped by nearly 5% after business hours.
Elon Musk’s company Tesla’s output.
These are the outcomes.
- According to Refinitiv’s survey of analysts, earnings were $1.05 vs the adjusted expectation of 99 cents per share.
- Revenue: $21.45 billion vs Refinitiv’s expectation of $21.96 billion.
The third quarter of 2022 saw Tesla’s net income (GAAP) reach $3.33 billion, with automotive gross margins remaining stable at 27.9%, the same level as the first three months of 2022. For the same time period in 2017, Tesla reported $1.62 billion in earnings.
Elon Musk addressed queries from shareholders on the demand for electric vehicles and a potential share repurchase during an earnings call on Wednesday to discuss the results.
I can’t stress this enough, but we anticipate selling every car we produce for as long as we can imagine. We have tremendous demand for Q4. We are delivering every car we make, the facilities are working at full capacity, and we are maintaining excellent operating margins.
- Tesla announced adjusted EPS of $1.05, above the consensus estimate of 99 cents, on revenues of $21.45 billion, which were lower than the $21.96 billion anticipated.
- Automotive sales increased by 55% over the same quarter last year, while net income (GAAP) more than doubled to $3.33 billion.
- The corporation stated that it was “transitioning to a smoother delivery pace” and issued a warning regarding a transportation capacity constraint for new car deliveries in the last weeks of the quarter.
According to Elon Musk, “China is encountering a type of recession,” mostly in the real estate sector, and “Europe has a sort of recession driven by energy.” Although the Fed is raising interest rates more than they should, they’ll soon realize that North America is in great form and will bring them down once more, he continued. Musk added, in response to a different query that he would be purchasing Twitter.
Elon Musk also discussed his upcoming purchase of Twitter in response to a separate question, adding, “I think it’s an asset that has sort of languished for a long time but has amazing potential.” Later on, he continued, “Twitter’s long-term potential is orders of magnitude more than its current worth.”
Q3 earnings information
Tesla’s vehicle revenue was $18.69 billion, up 55% from the same period last year. In accordance with the growth in automotive sales, the company’s core automotive business’ cost of revenue increased to $13.48 billion during the quarter from $10.52 billion during the second quarter. 1.5% of Tesla’s automotive regulatory credits of $286 million, came from the automobile sector.
In its shareholder presentation on Wednesday, Tesla reaffirmed its prior forecast, stating: “Over a multi-year period, we anticipate reaching a 50% annual increase in car deliveries.”
The business stated that it is manufacturing the Semi in Nevada, where it already manufactures battery packs for its US-built cars. The company maintained that deliveries of its Semi electric heavy-duty truck will start in December. The Semi was initially introduced in December 2017.
Tesla said only that it would be built in Texas after the ramp-up of Model Y manufacturing there and did not provide a precise launch date for the Cybertruck pickup.
As of the preceding quarter’s conclusion on September 30, 343,000 vehicles were delivered, and 365,000 vehicles were produced, according to the firm. The most accurate representation of Tesla’s stated sales comes from deliveries. Since that weekend report on October 2, shares have decreased by more than 17%.
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