Key Stats for Tesla Stock
- Pre-Market price change for Tesla stock: -3%
- $TSLA Stock Price as of Oct. 21: $386
- 52-Week High: $499
- $TSLA Stock Price Target: $398
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Tesla (TSLA) beat Wall Street estimates for Q3, but Tesla stock still slid more than 3% in extended trading on Wednesday.
- Adjusted earnings came in at $0.48 per share, ahead of the $0.45 per share analysts expected.
- Revenue hit $28.05 billion, just below the $28.25 billion estimate.
The beat was small, and the details were mixed. Revenue was slightly lower than the $28.24 billion from a year ago.
Automotive revenue fell 3% to $20.56 billion, and energy revenue dropped 16% to $2.88 billion. Tesla attributed this to lower average selling prices and battery supply problems.
Services and other revenue was the bright spot, which rose 33% to $4.61 billion.
Net income fell to $787 million, or $0.22 per share, from $1.11 billion a year ago.
Capital spending more than doubled to $3.73 billion, mostly for Optimus robots and other AI projects, while free cash flow fell 62% to $1.53 billion.
Active FSD subscriptions rose 67% to 1.74 million and automotive margins, excluding credits, rose to 18.1% from 16.3% last quarter.
Tesla also ended the quarter with more than $45 billion in cash and investments.
The call also covered the possible SpaceX merger, and Elon Musk said it would be a “good idea” for the two companies to combine, and special committees have been formed.
He added that he had already said everything that should be said.
See analysts’ growth forecasts and price targets for Tesla stock (It’s free) >>>
What the Market Is Telling Us About Tesla Stock
The market seems more focused on spending and slower growth than on the beat. Tesla stock is being asked to fund a lot of future bets, and profits are shrinking for now.
Tesla expects capital spending of about $20 billion this year.
Musk also pushed out the payoff and said the robotaxi fleet will start to matter in Q2 of next year, with a bigger impact by Q3 or Q4.
He expects Optimus issues to be solved around the end of next year.
Tesla stock now depends on whether these new businesses grow fast enough to justify the spending.
Deliveries were about 2% lower than a year ago, which adds to the caution.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is Tesla stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what TSLA stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
