Tesla Q3 revenue falls short of expectations, while energy unit shows growth

The company reported revenue of $21.45 billion in the third quarter, missing analysts' expectations.

The earnings release caused shares to fall in after hours trading.

The company's net income for the third quarter was more than double what it made in the same period a year ago. The company's profits were squeezed by increases in raw material costs as well as issues ramping up production at its Germany and Texas factories. The dollar's strength was cited as a factor in the company's third-quarter results.

In its third-quarter letter to shareholders, the company reiterates its plan to achieve a 50% annual growth in vehicle deliveries. It was only after the Model Y ramp that the production of Cybertruck would begin at the Texas factory.

In the same period last year, the company earned 62 cents per share.

Revenue from the automotive division came in at $18.69 billion in the third quarter, a 55% increase from the same period a year ago.

The company's automotive gross margins were the same as last quarter, but still lower than early this year.

The delivery of 343,830 vehicles in the third quarter was a new record and a reversal from earlier in the year when a shutdown of its China factory and difficulties opening factories in Berlin and Austin affected how many vehicles it was able to get into customers' homes. The third-quarter delivery figure didn't meet Wall Street forecasts, which ranged between 358,000 and 371,000 vehicles. The production and delivery numbers were not always the same. In the third quarter, the company produced over three hundred thousand vehicles.

Energy unit growth

There was an increase in business for the energy unit.

In the first quarter of this year, the company reported that energy storage deployment shot up from 1.29 gigahertz in the third quarter of 2016 to 2.1 gigahertz in the first quarter of this year.

This is the highest level of growth we have ever achieved, according to the company. A Megapack battery caught fire at a California power storage facility. A shelter-in-place advisory was issued in Moss Landing because of the incident.