On Wednesday, Tesla Inc. (NASDAQ:TSLA) experienced a pre-market stock decline of 3% following a report from Evercore that characterized the electric vehicle maker's third-quarter deliveries as "a slight expectational disappointment." The investment firm noted that Tesla's deliveries for the quarter stood at 463,000 units, which was below the heightened expectations of around 470,000 from the buy-side and just slightly above the consensus estimate of 462,000.
The company's production figures reached 470,000 in the same period, while the average deliveries over the past seven quarters have been approximately 443,000, with an estimated inventory of 127,000. The report also highlighted a decrease in energy production, with Tesla generating 6.9 GWh in the third quarter, a drop from 9.4 GWh in the second quarter.
Evercore projects that Tesla will report third-quarter earnings per share (EPS) in the range of 57 to 59 cents, with an expected gross margin (GM) of around 15%. This financial forecast comes as Tesla faces a slight setback in its delivery numbers, which is a closely watched indicator of demand and sales performance for the company.
The recent update on Tesla's performance indicates that while production remains robust, the company has seen a dip in deliveries compared to some market expectations. Additionally, the energy generation aspect of Tesla's business has seen a reduction from the previous quarter, which may be of interest to investors focusing on the company's diversification into energy products.
This news arrives as investors and analysts alike monitor Tesla's operational efficiency and growth trajectory in a competitive and rapidly evolving electric vehicle market. The company's stock movement in pre-market trading suggests that the latest figures have had an immediate impact on investor sentiment.
In other recent news, Tesla's third-quarter vehicle deliveries, totaling 470,000, slightly surpassed consensus estimates, but fell short of expectations, prompting scrutiny from investors. Barclays (LON:BARC) maintained its Equalweight rating on Tesla shares, attributing the delivery miss to weaker performance in the Model S, Model X, and Cybertruck lines.
Meanwhile, Wedbush reiterated its Outperform rating on Tesla shares, emphasizing the potential value of Tesla's advancements in artificial intelligence (AI) and Full Self-Driving (FSD) technology.
In contrast, Wells Fargo (NYSE:WFC) maintains an Underweight rating on Tesla, suggesting potential declines in delivery growth and auto gross margins. Canaccord Genuity (TSX:CF) remains optimistic, expecting resilience amidst broader auto industry challenges, bolstered by preliminary September sales data from several countries.
In other company news, Tesla recently won a dismissal of a shareholder lawsuit alleging fraud over self-driving technology claims. Additionally, despite ongoing labor disputes, Tesla has seen an increase in its market share in Sweden, reaching 8.5% in 2024, up from 7.8% the previous year. These are the latest developments in Tesla's recent journey.
InvestingPro Insights
To provide additional context to Tesla's recent performance, let's examine some key financial metrics and insights from InvestingPro. Tesla's market capitalization stands at an impressive $781.35 billion, reflecting its dominant position in the electric vehicle market. The company's P/E ratio of 62.62 indicates that investors are willing to pay a premium for Tesla's future growth potential, aligning with the "InvestingPro Tip" that Tesla is trading at a high earnings multiple.
Despite the slight disappointment in Q3 deliveries, Tesla's financials remain robust. The company reported revenue of $95.32 billion over the last twelve months, with a gross profit of $16.89 billion. However, the gross profit margin of 17.72% supports another "InvestingPro Tip" that Tesla suffers from weak gross profit margins, which may be a factor in the company's current valuation and recent stock performance.
It is worth noting that Tesla's stock has shown strong performance over various timeframes. The company has seen a 20.51% price return over the past month and a substantial 54.85% return over the last six months. These figures align with the InvestingPro Tip highlighting Tesla's strong recent returns.
For investors seeking a more comprehensive analysis, InvestingPro offers 19 additional tips on Tesla, providing a deeper understanding of the company's financial health and market position.
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