Yahoo Finance Tesla Q3 earnings beat expectations, shares surge
Tesla (TSLA) shares rallied after the company reported earnings that were better than expected.
The electric car company announced Q3 revenue of $2.3 billion, which was stronger than the $1.9 billion expected by analysts. Earnings adjusted for nonrecurring items came in at $0.71 per share; analysts were looking for a net loss of $0.54 per share.
During the quarter, Tesla delivered 24,821 vehicles, which is a bit higher than the 24,500 vehicles the company estimated earlier this month. This included 16,047 Model S and 8,774 Model X vehicles. Management noted that 5,065 vehicles “were in transit to customers at the end of the quarter” and would be delivered in Q4.
“New product launches , increased store efficiency and new store openings drove year-on-year order growth in Q3, while self-driving hardware and other product enhancements position Tesla for additional market share gains,” management. “Our energy storage products are gaining increased market acceptance, firmly establishing Tesla as a leader in energy storage solutions, and surpassing our competitors in the breadth and scope of our offerings across residential, commercial, and utility-scale storage markets.”
During the quarter, net orders for Model S and Model X vehicles grew 68% year-over-year.
Management said the company is on track to meet its targets for the second half of the year, which includes delivering 50,000 vehicles.
At the end of the quarter, Tesla vehicle charging network consisted of 715 Supercharger locations with 4,461 individual Superchargers.
“More than four years since its introduction, Model S continues to expand market share, which is a testament to our continuous vehicle innovation,” management said. “In the U.S., which is Tesla’s most mature market, Model S deliveries grew nearly 60% year over year, increasing its lead status with a 32% share of the top 12 selling large luxury sedans, as Model S unit growth significantly outpaced U.S. large luxury sedan category sales growth.”
Tesla had $3.1 billion in cash and equivalents on its books at the end of the quarter, down from $3.2 billion at the end of Q2.
Tesla shares were up around 5% in after-hours trading.
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Sam Ro is managing editor at Yahoo Finance.
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