Tesla Q3 net profit $143 million unexpected profit after the stock price rose 20%

SMM: it is reported that after the close of trading in the United States on Wednesday, electric vehicle manufacturer Tesla announced the third quarter of 2019 results. Tesla's third-quarter revenue was $6.3 billion, down 8% from $6.8 billion a year earlier, adjusted net profit to shareholders was $143 million, down 54% from a year earlier, and adjusted earnings per share were $1.91, down 37% from a year earlier, according to the results. Tesla shares soared 19.4 per cent in after-hours trading to their highest price since February as a result of unexpected earnings.

The following are the key points of Tesla's third quarter financial report:

Tesla's revenue in the third quarter of 2019 was $6.3 billion, while analysts generally expected $6.33 billion, down 8% from $6.8 billion in the same period last year.

Tesla's adjusted net profit to shareholders in the third quarter of 2019 was $143 million, and analysts expected it to be $6.45 billion, down 54% from $311 million a year earlier.

Tesla's adjusted earnings per share for the third quarter of 2019 were $1.91, and analysts generally expected a loss of $0.29 a share, down 37% from $3.02 in the same period last year.

Tesla produced 96000 vehicles in the third quarter of 2019, delivering a total of 97000 vehicles. Of these, Model S and Model X produced 16318 vehicles, down 39 per cent from 26903 in the same period last year. Model 3 produced 79837 vehicles, up 50 per cent from 53239 in the same period last year.

Tesla delivered 17483 Model S and Model Xs in the third quarter of 2019, down 37 per cent from 27710 in the same period last year. Model 3 deliveries were 79703, up 42% from 56065 in the same period last year.

By the end of the third quarter, the cash and cash equivalents owned by Tesla had increased by $383 million to $5.3 billion. Of this total, free cash flow (that is, operating cash flow minus capital expenditure) was $371 million;

"operating expenses are at the lowest level since the launch of Model 3," Tesla said in a statement. As a result, we regained profitability in the third quarter while promoting positive free cash flows, which was achieved by cutting significant costs from our business. " Since last year, Tesla has announced at least three rounds of layoffs and restructured its business unit in response to a slowdown in sales of higher-margin models.

Overall, Tesla's third-quarter results were a surprise for investors. After all, even Elon Musk (Elon Musk), its chief executive, is conservative about third-quarter expectations, saying on a second-quarter earnings call that he expects a small loss in the third quarter. The company's vehicle delivery data for the third quarter also did not help because it failed to meet Musk's internal target of delivering 100000 electric vehicles.

However, Tesla's future prospects make investors more looking forward to it. Tesla's super factory in Shanghai is building faster than expected and has begun trial production. At the same time, the crossover Model Y has been developed faster than expected and is expected to go into production in the summer of 2020, which is likely to be more popular than the Model 3. Tesla also said that he plans to limit the production of Tesla electric truck Semi, next year and hopes to announce the location of its European super factory soon, and plans to start producing electric vehicles in 2021.

In the third quarter 2019 results, Tesla said: "the Shanghai superplant was completed within 10 months and is ready to go into production, and its construction cost (capital expenditure per unit of capacity) is about 65 per cent lower than our Model 3 production system in the US."

Profit margins will be highly watched on today's earnings call, in part because Tesla launched his own car insurance service in the third quarter, as well as a new Autopilot software upgrade that could enable the company to generate deferred revenue. Tesla sold more of the lower-priced Model 3 cars in 2019, while sales of the higher-priced Model S and Model X fell.

"although the average sales price of Model 3 (ASP) has declined as the global market structure stabilizes, our gross margin has increased," Tesla said in his third-quarter results. "

In the third quarter, Tesla released wireless software updates, including the controversial Smart call (Smart Summon) feature, which allows Tesla owners to call and control their cars remotely. In some cases, cars can even pick them up for short distances without driving.

Tesla's energy business also grew in the third quarter. Compared with the company's electric vehicle business, Tesla's energy business has been in a state of "dormancy" for a long time and has always been regarded as an optional project by sceptics. This changed in the third quarter, with Tesla's solar installation rate up 48 per cent compared with the second quarter of 2019. This is thanks to new initiatives in the energy business, such as the introduction of giant batteries, which could prove as subversive as Tesla's electric cars.

As Tesla made its first profit in nearly a year with strict cost controls, the company's shares surged 20 per cent in after-hours trading to below $300, the highest level since February.

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