Tesla Stock Drops After Missing Revenue Expectations

Topline

Shares of Tesla declined more than 3% Wednesday afternoon after the company fell short of expectations on its third-quarter revenue, though the company did beat estimates for earnings per share and profit.

Tesla CEO Elon Musk talks during a tour of the Tesla Gigafactory on August 13, 2021 in Grünheide … [+] near Berlin. (Photo by Patrick Pleul – Pool/Getty Images)

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Key Facts

Tesla reported $21.45 billion in revenue for the third quarter, below the $21.96 billion Wall Street expected.

Its nearly $3.3 billion in quarterly profit did beat estimates of $3.2 billion, though, and came just short of the record profit of just over $3.3 billion reported in the first quarter.

The company reported adjusted earnings of $1.05 a share, beating estimates of 99 cents.

Tesla told investors it expects “to achieve 50% annual growth in vehicle deliveries” over a “multi-year horizon,” after previously saying it planned for 50% growth this year.

What To Watch For

Tesla tweeted a video of its semi truck Wednesday, saying “deliveries are scheduled to begin in December.”

Key Background

Tesla’s share price has declined 37% since the start of the year, outpacing a broader downturn in the Nasdaq amid worries about supply chain issues and concerns over a potential decrease in demand. CEO Elon Musk’s $44 billion on-again, off-again deal to purchase Twitter has also been a drag on the stock, as investors worry he will have to sell more shares to finance the deal after he offloaded more than $15 billion in Tesla stock earlier this year, though Musk has stated he does not have plans to sell any more.

What We Don’t Know

The company didn’t announce when it plans to start production for its highly anticipated cybertruck.

Big Number

343,000. That’s how many deliveries Tesla reported for the third quarter, setting a new quarterly record but falling below Wall Street’s expectation of nearly 365,000.

Forbes Valuation

We estimate Musk to be worth $219.3 billion, making him the richest person in the world.