Tesla’s Q3 Earnings: A Mixed Bag Despite Record Sales, Leads to 5% Stock Dip
Tesla presented a mixed bag of results for the third quarter on Wednesday. While the revenue of $28.1 billion surpassed estimates, the adjusted earnings per share of $0.50 fell short of the anticipated $0.54. The electric vehicle behemoth reported record quarterly sales of nearly 500,000 cars. This surge was primarily driven by Americans rushing to buy EVs before the expiration of the federal tax credit on October 1st.
However, the operating profit experienced a 40% year-over-year drop to $1.624 billion. This decline was primarily attributed to shrinking gross margins and reduced regulatory credit sales.
CEO Elon Musk unveiled ambitious plans for the expansion of robotaxi services. Musk stated that Tesla aims to eliminate human safety drivers from its Austin service by the end of the year. Furthermore, the company plans to launch in 8-10 metro areas by 2025.
The company’s energy storage business emerged as a silver lining, with revenue soaring 44% to $3.42 billion. Despite the record-breaking deliveries, shares dipped over 5% in after-hours trading. Investors continue to express concerns about the challenging journey ahead without federal EV incentives.