Tesla shares skyrocket after the third-quarter earnings surprise
October 24, 2019 | Investopaper
Tesla shares surged more than 20 percent after the company showed strong third-quarter earnings. Beyond the expectation of loss in the third quarter of 2019, Tesla delivered a surprise profit.
The company reported third-quarter adjusted earnings per share of $ 1.86. This has hugely surpassed the analysts’ expectation of loss per share of 42 cents. Likewise, Tesla generated a revenue of 6.3 billion dollars in the third quarter. Analysts had expected a similar revenue for Tesla (6.33 billion dollars) for the third quarter.
The company has also informed the shareholders that its new factory in Shanghai is ahead of the schedule. At the same time, its most-anticipated Model Y crossover is also ahead of schedule. Tesla expects the production of the Y Model to commence by Summer 2020.
In the previous quarter, due to a loss of $1.12 per share, the shares had dropped in price. The company stated in the Q3 report, that the gross margins have improved despite the fall in the average selling price of Model 3 vehicles. The automotive gross margins rose to 22.80 percent in the third quarter.
