Tesla (TSLA) Shares were volatile in after-hours trading as the electric vehicle maker missed out on both sales and bottom line profits, but the company said Cybertruck deliveries are on schedule for this November.
Regarding the quarter, Tesla reports $23.4 billion in salesAlthough it missed the $24.06 billion expected by analysts, sales rose 13% year-over-year. From a profitability perspective, Tesla reported adjusted earnings per share (EPS) of $0.66 versus the expected $0.74 and adjusted net income of $2.3 billion versus the expected $2.56 billion. That’s nearly 30% less than a year ago.
The decline in profitability could be attributed to expected downward pressure on margins since Tesla began cost-cutting efforts late last year. Tesla reported a third-quarter gross profit margin of 17.9%, slightly below Wall Street’s expectations of 18.0%. Last quarter, Tesla reported a gross margin of 18.2%.
However, Tesla has reiterated its production target of 1.8 million vehicles in 2023.Earlier this month, Tesla Announced delivery of 435,059 vehicles worldwide, about 419,000 of which were Model Y and Model 3 cars, and about 16,000 were more expensive Model X and Model S cars. Wall Street consensus estimates pegged deliveries at 456,722.
Tesla delivers about 1.3 million vehicles globally through three quarters of the year, so it would take a very strong quarter of about 500,000 vehicles to meet its annual delivery goal.
Looking to future products, Tesla said Cybertruck deliveries are on track for the second half of this year, with deliveries beginning in November. Tesla had said the delivery event would take place in the third quarter, but no event took place in the same quarter. The company also said it expects Model Y production to gradually increase at Giga Austin and Giga Berlin.
This story is developing. Please check the latest information.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
