Tesla shares fell about 6. 7% on Thursday as investors digested Wednesday night’s third-quarter earnings report.
Tesla reported earnings of $1. 05 per share, beating expectations of 99 cents per share. Revenue came in at $21. 45 billion, beating analysts’ expectations of $21. 96 billion.
The company said on its earnings call that while it expects its production to grow 50 percent this year, its deliveries could drop a little less than 50 percent “due to an increase in the number of cars in transit at the end of the year. “. “
Still, Musk was confident in the gains, noting that the company is “accelerating thoroughly” even with a possible recession looming.
“I can’t stress enough that we have wonderful demand for the fourth quarter and plan to sell each and every car we make in the future,” Musk said. “The factories are running at full capacity,” and we deliver each and every car we make, while maintaining strong operating margins.
Musk’s comments convinced Bernstein’s principal research analyst, Toni Sacconaghi.
“Outside of finances, we didn’t like the call for results,” Sacconaghi said in a note Thursday. “The answers to many questions about the earnings call have been brief and almost dismissive, with CEO Musk making very ambitious predictions about Tesla’s long-term. and capabilities. “
Sacconaghi, which has a lower performance score than Tesla, set its 12-month value target at $150, which would translate into a nearly 30% drop from Thursday’s close of $207. 28.
– Michael Bloom of CNBC contributed to the report.
Subscribe to CNBC on YouTube.
Do you have confidential news tips? We to hear from you.
Sign up for loose newsletters and get more CNBC in your inbox
Get this in your inbox and more information about our and services.
© 2022 CNBC LLC. All rights reserved. A department of NBCUniversal
Data is a real-time snapshot * Data is behind by at least 15 minutes. Global monetary and industry news, inventory quotes, and market knowledge and analysis.
Data also by