Tesla shares took a sharp downturn on Thursday after the release of the company’s third-quarter results, which fell short of expectations. The electric automaker reported missing on both the top and bottom lines, causing a drop of around 9% in its stock price.
One of the main factors contributing to the disappointing results was Tesla’s delivery figures for the quarter. The company delivered 139,300 vehicles during the period, which was lower than the 144,000 that analysts had estimated. Tesla cited challenges related to the pandemic, including supply chain disruptions and shipping delays, as reasons for the lower delivery numbers.
In addition to the delivery figures, Tesla’s revenue also fell short of expectations. The company reported revenue of $8.77 billion for the quarter, missing the consensus estimate of $8.36 billion. Despite the revenue miss, Tesla’s revenue still showed significant growth compared to the same period last year, with a 39% increase.
Tesla’s net income for the quarter was $331 million, which was a positive result, but fell short of the $592 million that analysts had predicted. The company’s earnings per share were $0.27, also lower than the expected $0.55.
Tesla Shares Sells Off After Musk Tempers Cybertruck Hopes
During the earnings call, CEO Elon Musk sounded a cautious note about the future, stating that the company’s current stock price reflects “a lot of optimism” and that investors should be cautious. He also downplayed the significance of the Cybertruck, Tesla’s highly anticipated electric pickup truck. Musk stated that the Cybertruck is “not a key product” for the company and that the focus is on more mainstream vehicles like the Model Y.
Despite the disappointing results and Musk’s cautious statements, Tesla remains a strong player in the electric vehicle market. The company has seen significant growth this year and has exceeded delivery expectations in previous quarters. Tesla also continues to expand its production capacity and is in the process of building new factories in Germany and Texas.
Overall, while Tesla’s third-quarter results may have fallen short of expectations, the company’s long-term prospects in the electric vehicle market remain positive. Investors will be closely watching Tesla’s future delivery numbers and its ability to meet demand as the company continues to grow.
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