Tesla released its third-quarter earnings results. Despite record revenue, it still missed Wall Street’s expectations because the company’s car deliveries were lower than expected and spending on new factories and new battery production squeezed margins.
Tesla’s third-quarter revenue of $21.45 billion, while a record, fell short of the average analyst estimate of $21.96 billion. Tesla did not set a year-end delivery target in its earnings report and did not announce a stock buyback program that was expected, leaving some investors disappointed with this quarter’s results. Tesla shares fell 3 percent in after-hours trading.
Jesse Cohen, senior analyst at Investing.com, said: “Tesla’s poor quarterly results are another indication that growing macroeconomic uncertainty is having an impact on demand for its electric vehicles. Tesla may face challenges in adding new production, particularly at its Berlin plant, which could push it short of its 50 percent delivery growth target for the year.”
Tesla CEO Elon Musk is expected to appear on an analyst call to answer questions about whether the company will stick to its goal of increasing shipments by 50 percent this year. Some analysts have questioned whether market demand is softening.
