- Tesla shares soared as much as 20% on Thursday after the company said it achieved profitability for the first time since the fourth quarter of 2018. It marked the stock’s biggest intraday spike since May 2013.
- It defied consensus Wall Street analyst forecasts of a quarterly loss.
- Tesla also beat third-quarter earnings-per-share estimates.
- CEO Elon Musk said that the company’s new Shanghai factory had already reached trial production and that the upcoming Model Y crossover would be released sooner than expected.
- Watch Tesla trade live here.
Tesla shares spiked as much as 20% on Thursday after the company said it achieved profitability for the first time in three quarters. That defied analyst forecasts of a quarterly loss and marked the stock’s biggest intraday surge since May 2013.
The automaker also trounced Wall Street’s expectations for quarterly earnings per share.
Still, Tesla fell short of revenue estimates, and the company recorded its first year-over-year revenue decline since 2012.
Here are the key figures:
Earnings per share: $1.86, versus the -$0.24 estimate
Revenue: $6.30 billion, versus the $6.45 billion estimate
Gross margin: 18.9%, versus the 17.7% estimate
Q3 vehicle deliveries: 97,000, versus an estimated 95,000 to 100,000
Founder and CEO Elon Musk said the company’s new Shanghai factory was already in the trial production phase and would be ready to hit volume production “in a few months.” Tesla says the facility will allow it to access the Chinese market at a lower cost and boost vehicle sales internationally.
“I’d like to thank our entire team for this extraordinary achievement. I’m not aware of any factory of this magnitude in history being constructed in such a short period of time, approximately 10 months,” Musk said on a call with analysts. “As far as I know, this is unprecedented.”
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The automaker also moved its Model Y release window to summer 2020 from fall 2020. It said the new crossover would be built on the same platform as the Model 3 and cost less than Tesla’s other SUV, the Model X.
Tesla said earlier in October that it delivered a record 97,000 vehicles in the third quarter. That fell at the lower end of analysts’ estimate of 95,000 to 100,000 deliveries, and shares sank about 4% in after-hours trading following the release.
Tesla closed at $254.68 per share Wednesday, down roughly 24% year-to-date.
The automaker has 12 “buy” ratings, 10 “hold” ratings, and 15 “sell” ratings from analysts, with a consensus price target of $265.97, according to Bloomberg data.
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