Tesla Q3 Earnings Report And Analyst Reaction

Benzinga

Electric vehicle company Tesla Inc (NASDAQ:TSLA) reported third-quarter financial results after market close Wednesday.  Tesla reported third-quarter revenue of $28.095 billion, up 12% year-over-year. The revenue total beat a Street consensus estimate of $26.239 billion according to data from Benzinga Pro.  This marked the first revenue beat compared to consensus estimates by the company after four straight misses. Automotive revenue was $21.21 billion in the quarter, up 6% year-over-year.

Transcript

00:00tesla down four percent here in the pre-market currently trading at 421 um similarly i would

00:06say to the spy we have a kind of a sideways range here that has acted as both resistance and support

00:12we currently find ourselves in that range bottom end of that range is 417.13 you want to round that

00:18down to 417 that makes a lot of sense we'll see if we can uh kind of hang on to this maybe trade

00:24back up or if we punch beneath this perhaps the 50-day moving average down there at 395 and a half

00:30is our next stop here for tesla let's take a look at the earnings report electric vehicle or electric

00:37vehicle company tesla reported third quarter financial results after the market closed

00:41yesterday tesla reported third quarter revenue of 28.095 billion that's up 12 percent year over year

00:48the revenue total beat a street consensus of 26.239 billion according to the data from benzinga pro

00:55this marked the first revenue beat compared to consensus estimates by the company after four

01:00straight misses automotive revenue was 21.21 billion in the quarter that's up six percent year over year

01:07revenue growth was aided by an increase in delivery energy and services and hindered by lower regulatory

01:13credit revenue tesla rio uh excuse me tesla reported third quarter earnings per share of 50 cents

01:19which missed the street consensus estimate of 54 cents per share this was the fourth straight miss

01:25for earnings per share by tesla operating income fell 40 percent year over year to 1.6 billion

01:32in the third quarter with the company reporting an operating margin of 5.8 percent tesla previously

01:37reported third quarter deliveries of 497 099 a new company record the company also reported third

01:45quarter production of 447 450 vehicles the company said record deliveries came with growth across all

01:54regions energy storage was also a record in the third quarter with 12.5 gigawatts hours storage deployed

02:02tesla endure excuse me tesla ended the quarter with 7 753 supercharger locations that's up 16 percent

02:11year over year the company ended the quarter with 73 817 supercharger connectors so that infrastructure

02:19continues to get built out the company had 1.31 billion in digital assets on the balance sheet at the

02:24end of the quarter likely made up of bitcoin this marked an increase in value from the 1.235 billion reported

02:31in the second quarter tesla ended the quarter with 41.6 billion in cash tesla said it will continue to

02:40launch products that excited uh customers including the model y l model y performance and the new

02:47affordable model 3 and model y standard vehicles quote we believe our scale and cost structure will

02:53enable us to navigate the shifting market dynamics across the grow globe more efficiently than our peers

02:59with advances in ai making our selling in the market end quote tesla said it focused on long-term

03:07growth and value creation which comes in the face of tariffs and shifting trade policies the company

03:12said it's it had sufficient liquidity to fund its product roadmap for the long-term capacity expansion

03:18plans tesla said the cyber cab the tesla semi and the mega pack 3 are all on schedule for volume

03:24production in 2026 the company also said its optimist bot has first generation production lines being

03:31installed ahead of anticipated volume production um it's also funny elon musk in that uh in in the

03:39conference call pretty much went at activist investors said that hey uh if i build a robot army and other

03:46people are trying to oust me and take control of that just uh interesting example to use uh kind of made

03:53me chuckle and after i thought about it i was like robot army that's no good that can't be good let me

03:59know if you think that's good robot army tesla robot army uh gary black says elon musk's buzzwords and

04:06technical jargon did little to boost investor confidence during the uh earnings call tesla by the

04:11way just another quick peek here tesla at the pre-market lows of the day down here 421 22.

04:17future funds llc managing director gary black says that tesla's ceo elon musk's comments

04:23about the future aren't enough to instill investor confidence in the company's uh investors following

04:28a mixed q3 earnings report taking to the social media platform x the investors shared his thoughts

04:35on the ev giants earnings call in a post on wednesday quote tesla uh q3 earnings call was

04:42long on promise but short on specifics end quote he then went on to provide a highlight of the earnings

04:48uh conference of whether tesla would remove onboard safety operators from its robo taxis

04:56which must which must address during the call the investor said musk's comments seem fit for engineers

05:03and not investors quote the technical jargon and buzzwords did little to instill confidence

05:08hence the stock price kept falling during most of the call end quote let me know if you agree with

05:12that would you prefer that he speak more to investors or remain more technical curious where you guys

05:20fall on that one personally i like i like when ceos are technical or use industry jargon because if i

05:28don't understand something that gives me a idea of hey what should i look into a little bit more what

05:35arm of this business do i need to understand better to make a better decision i don't mind this at all

05:40um it does mean that it's harder to get through some of those conference calls i really struggle

05:46with some of the medical and biotech ones because that's not really my jam anyway uh he added that

05:50the company's management should have instead uh focused on discussing major strategic initiatives

05:56early consumer response to the new more affordable vehicles among other things gerber kawasaki co-founder

06:02ross gerber during an interview said that tesla's focus shifting away from its core business

06:07uh like evs which the investor believes is still widely profitable for tesla would be a strategic

06:14error for musk's ev giant he also outlined that tesla makes the best cars in the world

06:25worth of tesla shares for clients musk meanwhile called proxy advisor firms i think i said activist

06:31investors before i apologize for getting that wrong here's the quote musk remain uh meanwhile called

06:37proxy advisory firms like international shareholder services iss and glass lewis corporate terrorists

06:44for opposing the billionaire's one trillion dollar pay package elsewhere black sees the new package as

06:50receiving overwhelming approval from tesla investors at the shareholder meeting in november with over 70

06:57to 75 percent of investors in the company being in favor of the pay package this makes sense to me if i was a

07:03long-term tesla holder and one of the big things for me was elon musk hitting these crazy milestones

07:10the fact he's not taking a salary and his entire pay package is based off performance yeah that's going

07:15to be a good thing for me too uh so let me know what you think here on tesla is there does tesla bounce

07:22today let's just make it easy does tesla bounce today do we see a trade up here or do we maybe see it

07:28move lower market here kind of flashing some weakness ahead of the opening bell we're not quite

07:33down to yesterday intraday lows but maybe it sells off and test that area again and perhaps it takes

07:38tesla with it if any of you uh have new short-term trades on um tesla i'd like to hear them uh we will

07:45definitely be taking a look at that here today

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