Tesla Inc (Nasdaq: TSLA) reported mixed fiscal 2022 third-quarter results. While earnings surpassed Wall Street estimates, revenues missed expectations. The electric car manufacturer also stated that it might not achieve its full-year delivery target. Following the quarterly report, the stock lost $14.76, or $6.65%, to close at $207.28.
Austin, Texas-based Tesla reported third-quarter revenues of $21.45 billion, up 56% from $13.76 billion in the comparable quarter last year. The company attributed the increase in revenues to a rise in vehicle deliveries, the strong performance of other business divisions, and the higher selling prices of vehicles.
For the third quarter that ended September 30, 2022, the company posted a net income of $3.29 billion, or $0.95 per share, an increase from $1.62 billion, or $0.48 a share, in the quarter that ended September 30, 2021. During the third quarter, Tesla recorded a negative currency exchange impact of $250 million.
Excluding stock-based compensation expenses, the company’s 3Q22 non-GAAP earnings were $3.65 billion, or $1.05 per share, an increase from $2.09 billion, or $0.62 a share in 3Q 2021.
Analysts surveyed by Thomson Reuters had anticipated earnings of $0.99 per share on revenues of $21.96 billion. Tesla pointed out that a steep rise in raw material costs and also issues related to stepping up production at Texas and German factories had a negative impact on profits. Additionally, the strong US dollar also affected the third-quarter results.
Segment wise,
- Automotive revenues grew by 55% y-o-y to $18.69 billion.
- Energy generation and storage revenues rose to $1.12 billion, from $806 million.
- Services and other revenues were $1.645 billion, an increase from $894 million in the prior-year period.
Tesla’s gross margins fell to 27.90% in the latest quarter, from 32% last year.
The company manufactured 365,923 vehicles but delivered 343,830 vehicles in Q3 2022. In the same period last year, the company produced 237,823 vehicles and delivered 241,391 vehicles. In spite of the strong production and delivery numbers, the quarterly figures missed Wall Street expectations, which were in the range of 358,000 to 371,000 vehicles. Furthermore, the disparity between production and delivery numbers was considerably high. Notably, Tesla manufactured 365,923 vehicles in the third quarter.
The company acknowledged the existence of logistics issues. Specifically, Tesla stated that its fourth-quarter deliveries will not grow by 50% on a y-o-y basis, but production will rise by 50%. The company had earlier stated that it had set a target of 50% growth in deliveries in FY22. In FY 2021, Tesla delivered 936,172 vehicles.
The mixed quarterly earnings and delivery issues are expected to keep the stock range-bound with a slight bearish bias in the near term.
The historical price chart indicates that the stock of Tesla is declining after facing heavy resistance at 300. The next major support is anticipated only near the 175 level. Additionally, the stock is trading below its 50-day moving average while the ultimate oscillator is trending toward the bearish zone. Therefore, we anticipate the share price of Tesla to remain in a downtrend for the next few trading sessions.
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