Tesla Does It Yet Again in Q3 With More Record Numbers

By Chris Lange Published Oct 21, 4:24PM EDT

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Tesla Does It Yet Again in Q3 With More Record Numbers — © jetcityimage / iStock Editorial via Getty Images

Tesla, Inc. (NASDAQ: TSLA | TSLA Price Prediction) reported its most recent quarterly results after the closing bell on Wednesday. The electric vehicle (EV) giant said that it had $0.76 in earnings per share (EPS) and $8.77 billion in revenue, compared with consensus estimates that called for $0.56 in EPS and $8.26 billion in revenue. The third quarter from last year had a net loss of $0.37 per share and $6.3 billion in revenue.

During this quarter, Tesla reported record vehicle deliveries, profitability, and free cash flow. At the same time, the company said that the buildout of three new factories on three continents is continuing as planned.

Revenues increased 45% a quarter over quarter basis, and 39% on a year over year basis. The reason for this substantial growth was from vehicle deliveries as well as growth in other parts of the business. Also, vehicle average selling price (ASP) declined slightly compared to the same period last year as Tesla’s product mix continues to shift from Model S and Model X to the more affordable Model 3 and Model Y.

In the third quarter, operating income increased to a record level of $809 million, resulting in a 9.2% operating margin. Positive profit impacts included strong volume, better fixed cost absorption and continuous cost reduction.

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For the quarter, automotive sales increased 42% year over year to $7.61 billion, with a gross margin of 27.7%. Total deliveries came in at 139,593.

Separately, the company reported solar deployment of 57 MW and storage deployment of 759 MWh, year over year increases of 111% and 81%, respectively.

On the books, Tesla added $5.9 billion to cash and cash equivalents for a total of $14.5 billion at the end of the third quarter. Operating cash flow was $1.4 billion.

Shares of Tesla closed Wednesday at $422.64, in a 52-week range of $50.27 to $502.49. The consensus price target is $309.55. Following the announcement, the stock was up over 2% at $431.25 in the after-hours trading session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.