Today has been yet another busy day for Wall Street – and it just got even busier. The closing bell has rung, and Tesla (NASDAQ:$TSLA) just reported quarterly earnings and revenue that surpassed analysts’ expectations.
Let’s take a look at how Tesla did compared to what Wall Street had expected:
- Adjusted loss per share: $1.33 versus $1.82 expected, according to Thomson Reuters
- Revenue: $2.79 billion versus $2.51 billion expected, according to Thomson Reuters
To simplify, Elon Musk and crew posted a narrower-than-expected adjusted loss of $1.33 per share on revenue of $2.79 billion.
Most notably, the Palo Alto, California-based company disclosed that Model 3 production was on track to reaching announced production targets. Furthermore, the automaker forecasts Model S and Model X deliveries to grow during the second half of the year, compared with the first half of 2017.
Despite overall industry sales of luxury cars remaining flat, Tesla said its deliveries increased 53% compared to the same quarter in 2016.
Towards the start of last month, Tesla announced deliveries of more than 22,000 vehicles for the quarter, which is down from the 25,000 delivered in the last quarter. Tesla later announced that 3,500 vehicles were in transit and would be counted in Q3.
Reservations for the Model 3 vehicle – which rolled out on Friday and is priced at $35,000 – have increased to more than 500,000, which is more than the 373,000 Tesla reported in the spring of last year. Not only that, it was also more than the total sales of any entry level luxury vehicle.
However, there are still some analysts out there who have concerns over whether or not Tesla can increase production at a fast enough rate. Additionally, there are worries over whether the Model 3 vehicle – Tesla’s first mass-market vehicle – will eat into sales of the company’s higher-end cars. Plus, investors are worried if Tesla will be able to fight off eventual competition from experienced rivals in the sector.
Featured Image: twitter
