Elon Musk Nasdaq Tesla

Tesla delivered 8% more vehicles in the third quarter than Wall Street analysts had expected.
Still, the stock sank following the announcement and was continuing to slide Wednesday as analysts began looking to Tesla’s third-quarter earnings later this month.
The company is expected to report its results on October 31 — when all eyes will be on its bottom line.
Follow Tesla’s stock price in real-time here.

Tesla’s total deliveries for the third quarter easily topped Wall Street’s expectations this week, but a coming quarterly earnings report and CEO Elon Musk’s departure as board chairman have analysts turning their attention back toward the electric-car maker’s balance sheet.

For the quarter ended September 30, Tesla delivered 83,500 vehicles — beating analyst expectations and its own forecasts. Model 3 production, slightly behind the delivery number at 53,239 for the quarter, translates to approximately 4,018 a week over the period’s 13 weeks. In August, Musk said he expected Tesla to produce 6,000 Model 3s a week by the end of the month — a rate the company said should allow it to earn “sustained quarterly profits, absent a severe force majeure or economic downturn, while continuing to grow at a rapid pace.”

Wall Street analysts won’t be convinced of profitability until they see it in a regulatory filing, expected October 31.

“Tough positive, we don’t have conviction that [Tuesday’s delivery report] is sufficient for Tesla to achieve its GAAP profitability target for Q3,” George Galliers, an analyst at Evercore ISI who has a $299 price target for the stock, said in a note to clients Wednesday. “As a result, we see little change to the big picture.”

Galliers estimated that the delivery beat — a few thousand vehicles ahead of the Street’s expected 80,900 — could add $488 million of revenue and $105 million of profit …read more

Source:: Business Insider


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