Tesla Inc (NASDAQ:TSLA) stock fell 3.56% (As on October 20, 11:41:54 AM UTC-4, Source: Google Finance) after the company posted third quarter earnings that beat analysts’ forecasts and revenue that fell short of expectations. Tesla has reported $3.3 billion in net income for the third quarter (Q3), more than double from a year ago, and its automotive revenue jumped 55 per cent from the same period last year to $18.69 billion. Cost of revenue for the company’s core automotive business rose to $13.48 billion during the quarter, up from $10.52 billion during the second quarter, in line with the increase in automotive sales. Tesla’s automotive regulatory credits made up 1.5% of automotive revenues at $286 million for the quarter. The company said that logistics volatility and supply chain bottlenecks remain immediate challenges, although improving. Tesla is likely to do a “meaningful buyback” next year, potentially between $5 billion and $10 billion pending board approval.
TSLA in the third quarter of FY 22 has reported the adjusted earnings per share of $1.05, beating the analysts’ estimates for the adjusted earnings per share of $1.03. The company had reported the adjusted revenue growth of 35.9 percent to $21.45 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $22.5 billion. The company previously reported that its deliveries for the quarter ending September 30 reached 343,000 and vehicle production reached 365,000. Deliveries are the closest approximation of sales reported by Tesla. Services and other revenue, which includes fees for customers powering up their cars at Tesla Supercharging stations, sales of Tesla-branded merchandise, and repairs for customers’ cars out of warranty, rose to $1.65 billion.
Moreover, Tesla increased its store and service center locations by just 6% in the third quarter, adding 41 new locations versus the second quarter of 2022. It added more mobile service vehicles to its fleet, however, which service technicians use to drive to fix customers’ cars on-site when possible. As of the end of the third quarter, Tesla said it was operating 728 store and service locations, with a fleet of 1,532 mobile service vehicles.
The company reiterated that deliveries of its Semi electric heavy duty truck will begin in December, and confirmed that it is producing the Semi in Nevada, where it produces battery packs for its vehicles in the US. The Semi was first announced in Dec. 2017. Tesla offered no firm timeline for the start of production of its Cybertruck pickup, saying only that it would be produced in Texas after the ramp-up of Model Y production there.