Tesla Q3 - Topline Miss

Tesla reported third-quarter earnings after the closing bell on Wall Street last night. I stayed up past my bedtime to watch the numbers hit the wires. Consensus forecasts had revenue at $22.13 billion and adjusted earnings per share at $1.015. They delivered $21.45 billion and $1.05 per share. The stock price fell about 6% in after-hours trade.

Traders may have been annoyed by the revenue miss, but that number was a massive $5 billion jump from the second quarter, where they were hit by shutdowns in Shanghai relating to Covid and optimising the factory. Year-over-year revenues are also nearly 60% higher than the same quarter back in 2021. So, exceptional operational advances are being made.

Tesla re-confirmed their goal of growing car sales by 50% per annum. That is a very demanding target, and will require aggressive ramp-ups in Giga Berlin and Austin, and continuous output from Giga Shanghai.

We are firm holders of Tesla stock, in anticipation of the massive switch from cars and trucks with internal combustion (petrol and diesel) engines, to an all-electric fleet, over the next two decades. Also, don't forget the solar and battery division, which Musk wants to be as big as the car unit. We expect Tesla to continue to dominate this industry.