Tesla ended the quarter with record revenue, but worsened its forecast for the year
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Wednesday Tesla introduced third quarter reporting. The company’s revenue grew by 56% to a record $21.5 billion. Net profit increased by 103% to $3.3 billion. However, these results were slightly worse than the expectations of analysts polled by Refinitiv. Tesla shares were down more than 6% on Wednesday after trading ended.
Investor sentiment was also affected by the fact that Tesla worsened its forecast for deliveries for the entire 2022. It previously expected growth of at least 50% from 939K last year to about 1.4M. The company has now said that target is likely to be missed. In September, the company published data on deliveries in the third quarter: they grew by 43% to 343.8 thousand vehicles. In total, 908.6 thousand cars were delivered in the first three quarters, which means that to meet the goal in the fourth quarter, it needs to deliver about 500 thousand cars.
The supply of electric vehicles this year was negatively affected by the lack of microchips and lockdowns in China. The company’s profit for the quarter was negatively impacted by rising material prices, as well as costs due to the increase in production rates at Tesla factories in Germany and the United States. According to analysts, sales of Tesla electric vehicles could be negatively affected by the recent increase in their price, as well as the general slowdown in the economy in different regions.
“Tesla’s terrible quarter is another sign that rising macroeconomic uncertainty is having some impact on EV demand,” said Jesse Cohen, an analyst at Investing.com. In addition, demand in China is slowing more than expected due to increased competition from local electric vehicle manufacturers, he said.
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