On Wednesday, after the bell, Tesla released its third-quarter financial results. During the earnings call, management addressed a wide range of issues, including macroeconomic worries and CEO Elon Musk’s impending takeover of Twitter.
Elon Musk assured investors that there is still solid demand for the cars his business produces despite Tesla Inc. reporting sales that fell short of Wall Street forecasts and blaming delivery and production difficulties.
Revenue increased by 56% compared to a year ago, but missed estimates by 3%; the stock declined marginally on Wednesday after hours.TSLA is quoting around $208.70 in the pre-market session on Thursday.
Musk joined the call and began by listing a number of reasons why Tesla was on track for an “amazing finish of the year” despite supply chain issues, a high currency, and “China experiencing a recession of sorts.”
During the call, Musk asserted that Tesla may be worth more than Apple and Saudi Aramco put together ($2.31 trillion and $2.09 trillion, respectively). He also hinted at a big Tesla stock repurchase. Musk was quick to qualify his claim with the phrase “now that doesn’t mean it will happen,” which is undoubtedly a scenario worth taking into account.
Also Read: S&P 500 year-end target revised by banks after a bear market bounce
Tesla announced adjusted EPS of $1.05, exceeding 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% from the same quarter last year, while net income (GAAP) more than doubled to $3.33 billion.
Also Read: Fed to deliver 4th consecutive 75 bps rate hike in November
As much of the electric vehicle manufacturer’s output was concentrated in the closing weeks of the quarter, loading automobiles onto ships and trucks in the most recent quarter proved to be particularly expensive and challenging. Due to the difficulty in delivering all the automobiles, Tesla’s CEO, Elon Musk, addressed worries that demand may be waning.
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.
(with inputs from agencies)