Tesla inventory drops after Q3 income miss

Shares of Tesla slid about 6.7% Thursday as traders digested the corporate’s third-quarter earnings report from Wednesday night.

Tesla reported earnings of $1.05 per share, beating expectations of 99 cents a share. Income got here in gentle at $21.45 billion, which missed analysts’ expectations of $21.96 billion.

The corporate mentioned on its earnings name that, whereas it expects 50% annual progress in manufacturing this yr, its deliveries might fall just below 50% progress “on account of a rise within the vehicles in transit on the finish of the yr.”

Nonetheless, Musk was bullish on the earnings name, noting that the corporate is “pedal to the steel” even with a possible recession looming.

“I can not emphasize sufficient now we have glorious demand for This autumn and we anticipate to promote each automobile that we make for as far into the longer term as we are able to see,” Musk mentioned. “The factories are working at full velocity and we’re delivering each automobile we make, and protecting working margins sturdy.”

Musk’s feedback did not persuade Bernstein senior analysis analyst Toni Sacconaghi.

“Except for the financials, the earnings name did not sit properly with us,” Sacconaghi mentioned in a observe on Thursday. “Solutions to many questions on the earnings name have been curt and virtually dismissive, with CEO Musk as a substitute repeatedly making very daring prognostications about Tesla’s future and capabilities.”

Sacconaghi, who has a underperform score on Tesla, set his 12-month value goal at $150, which might translate into a virtually 30% fall from Thursday’s shut of $207.28.

— CNBC’s Michael Bloom contributed reporting.