Shares of Tesla ( DSLA ) were volatile in after-hours trading after the electric-car maker missed both the top and the bottom, despite the company revealing that deliveries of the cyberdrug were taking place in November this year.
for the quarter, Tesla reported top-line revenue of $23.4 billion, missing analysts’ estimates of $24.06 billion, although revenue rose 13% from a year ago. From a profit standpoint, Tesla reported adjusted earnings per share (EPS) of $0.66 versus $0.74 expected and adjusted net income of $2.3 billion, down from the expected $2.56 billion, nearly 30% less than a year ago.
Expected downward pressure on margins could be responsible for the drop in profits since Tesla began its cost-cutting efforts late last year. Tesla reported Q3 gross margin of 17.9%, missing the Wall Street estimate of 18.0%. Tesla’s gross margin last quarter was 18.2%.
However Tesla reiterated its 2023 production target of 1.8 million vehicles. Earlier this month, Tesla It has delivered 435,059 vehicles globally, including approximately 419,000 Model Y and Model 3 vehicles and approximately 16,000 more expensive Model X and Model S cars. Deliveries were 456,722, according to Wall Street consensus estimates.
Tesla has delivered about 1.3 million vehicles worldwide through three quarters of the year, so the company will need a much stronger quarter — about 500,000 — to hit its annual delivery target.
In anticipation of future products, Tesla said Cyberdrug deliveries will continue later this year, with deliveries beginning in November. Although Tesla said a delivery event would take place in Q3, no event took place during the quarter. The company also said it expects Model Y production to gradually ramp up at Giga Austin and Giga Berlin.
This story is developing. Check back for updates.
Press Subramanian is a Yahoo Finance reporter. You can follow him Twitter And on Instagram.
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