On Wednesday morning, the market was nervous in anticipation of the report, and TSLA got off to a bad start with a sharp drop, but the during after hours, it shot way up, as the market reacted very favorably to the earnings report.
Overall, for the last five trading days ending Monday, Nov. 10, TSLA fell 0.27 percent, putting it behind NASDAQ, which rose 0.26 percent and the Dow, which rose 1.41 percent during that period.
Good News and Bad News in the Earnings Report
The good news is that Tesla reported third-quarter earnings and sales that beat expectations. The bad news is that the company lowered its forecast for the number of vehicles it would deliver during 2014. The market saw the report as very positive overall. TSLA jumped 7 percent after hours on Wednesday evening. Although it drifted down during the day on Thursday, it still ended the Thursday session with a gain of more than 4 percent for the day.
Earnings and Sales
Although earnings were down from a year ago, they did beat analyst expectations. Tesla reported earnings of 2 cents gain per share, while expectations were that earnings would be a loss of 1 cent/share. Last year’s earnings for the same quarter were a gain of 12 cents per share.
Sales were both higher than last year and higher than analyst expectations. The reported sales were $932 million. Expectations were that sales would be $892 million. Last year’s third-quarter sales were $603 million.
Tesla said it expected to deliver 33,000 vehicles for the year by the end of 2014, which was down by a couple of thousand from what it had previously predicted. CEO Elon Musk said that demand was not the problem — production was.
For the third quarter, Tesla delivered 7,785 vehicles, sightly lower than the 7,800 previously forecasted.
Tesla, however, raised its delivery goal for Model S to 50,000 for 2015.
Model X Delay
Tesla will be delaying the launch of its new Model X SUV from the first quarter of 2015 to the third quarter. Musk said that they wanted to get everything right,