Tesla stock (NASDAQ:TSLA) fell 6.7% on Thursday after the electric vehicle (EV) maker’s sales and delivery outlook disappointed investors.
What Happened to Tesla Stock?
In the third quarter, Tesla’s revenue increased 56% yearly to $21.5 billion. This fell short of Wall Street’s sales prediction of $22 billion.
The company’s car deliveries increased by 42% to 343,830, up from 241,391 the previous year. However, this, too, fell short of experts’ expectations of 371,000 automobiles delivered.
Nonetheless, price increases helped to offset growing manufacturing costs. Tesla’s operating income increased 84% to $3.7 billion, while its operating margin increased to 17.2% from 14.6% the previous year.
Tesla’s adjusted stock (NASDAQ:TSLA) profits grew 69% to $1.05, above the $0.99 consensus forecast.
So, what now?
During the company’s earnings call, CEO Elon Musk said that even if the economy were to enter a recession, Tesla would maintain its EV manufacturing cadence. “We’re pushing hard come rain or sun,” Musk remarked. “So, recession or no recession, we are not lowering our output in any major manner.”
Musk also predicted strong sales in the fourth quarter and beyond. “I can’t say it enough: we have fantastic demand for Q4, and we anticipate selling every vehicle we build for the foreseeable future,” Musk added.
CFO Zachary Kirkhorn, on the other hand, said that Tesla would fall short of its objective of a 50% delivery increase in 2022. Kirkhorn said that the shortage was “due to an increase in automobiles in transit at the end of the year,” which would cause some deliveries to be delayed until the first quarter of next year.
Featured Image – Megapixl © Sergiomonti
Author Okoro Chinedu 
