Tesla Motors ($TSLA) is a company you’ll never miss in your online stock trading. It has been charting its own course, under the direction of Elon Musk. The recent proof of that is seen in its third quarter results.
Tesla’s Surprising Profit
Tesla Motors did report a third quarter profit, which was unexpected since it significantly surpassed the estimates of Wall Street. The record production and delivery figures can be credited for this achievement. As this news came out, the company’s shares had also gained 5.40% or $10.92 in extended hours following the company reconfirming its delivery target for the year. The stock had actually closed the day’s trading on the NASDAQ down 0.05% or $0.10 before picking up in the after-hours trade.
Tesla reported Q3 profit of $21.88 million which translates to $0.14 per share. This is a massive improvement over the $229.88 million loss, $1.78 per share, suffered by the company last year. This profit is Tesla’s second ever quarterly profit after it became a public company.
Excluding items, adjusted earnings were $0.71 per share for the quarter, while last year the adjusted loss amounted to $1.35 per share. Thomson Reuters polled 12 analysts who, on average, expected $0.09 per share earnings for the quarter. According to Tesla, the company delivered 24,821 vehicles in Q3, which was a whopping 114% rise from last year. It also exceeded its outlook by 300 cars.
Model Deliveries and Future Plans
16,047 Model S cars and 8,774 Model X cars were delivered. Model X was launched last September, while the expensive Model S sedan had been Tesla’s main model for a long time. Tesla then realized that it needed to capture the mass market and is developing the Model 3, which will be a lower priced electric vehicle. Model 3 is expected to ship next year, and could make the company much more of a household name. Electric power will soon be perceived as affordable and practical.
For the future, Tesla has planned to deliver 50,000 vehicles in the second half of this year. Specifically, it plans to achieve more than 25,000 deliveries in Q4. It has affirmed that its plans to begin delivering Model 3 in the latter half of 2017 are in schedule.
The company’s expectations for capital expenditures this year are in the region of $1.8 billion, with capital efficiency being the continued focus of the company.
Stocks such as $TSLA are stars in a dark sky. Its performance influences the electric car industry massively and has encouraged other manufacturers to seriously develop electric vehicles. With the right trading software, you won’t miss stocks such as this. And TradeZero offers you the right software for efficient online trading right from your home. Give us a call at +1 954-944-3885, or email us at email@example.com.
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