Tesla manages not to disappoint the market, and that is a lot, taking into account the previous quarters. The company has beaten the expected profit and, above all, has managed to boost its margin. But what the market liked the most was that it has confirmed its production plans for new electric car models, which includes an affordable version. The shares have risen up to 8%.
Tesla is the first major American technology company to open fire and it has not disappointed, although there were all kinds of suspicions surrounding the company. On the stock market it is the only one of the Magnificent Seven (Tesla, Apple, Nvidia, Amazon, Microsoft and Netflix) that falls on the stock market in the year. But acceptable results and a perspective of acceptable deliveries have allowed investors to value the company’s future plans..
Tesla has announced an earnings per share of 72 cents compared to the 60 that the market consensus expected. Regarding income, the company invoiced $25.18 billion in the third quarter. It is below the expectations of analysts, who expected it to reach 25.43 billion.
Tesla shares are up 8% in premarket. Investors are liking the profit margin figure which stood at 17.1%, well above the 14.9% the market had expected. Tesla’s profit margins bolstered by $739 million in revenues for regulatory credits to the automotive industry during the quarter, for complying with low emissions.
The company has also indicated that it contemplates a slight growth in vehicle deliveries for 2024. Almost a miracle considering the drop in global sales of electric cars. “Despite the current macroeconomic conditions, we expect to achieve slight growth in vehicle deliveries in 2024“Tesla commented in a statement.
Earlier this month, Tesla reported that it had delivered 462,890 vehicles in the third quarter. Deliveries are the closest approximation to Tesla’s reported sales. The company also said it had produced 469,796 electric vehicles in the period ending September 30.
The most positive thing has been the future plans. Tesla has confirmed that it will begin producing affordable electric car models in the second half of 2025, as planned. This announcement is being the main driver of the increases. “Plans for new vehicles, including more affordable models, remain on track for the start of production in the first half of 2025. These vehicles will use aspects of the next-generation platform,” the company said. And he has even stressed that the production of the Cybertruck, the controversial all-terrain vehicle, is already profitable for the company.
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