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Tesla provided investors with Q3 results last night after hours. The results had good news for almost anyone interested in Tesla. For investors, a rare quarterly profit brings smiles. For owners, a coming bump in power. For fans, news that Tesla is advancing its autonomous driving technology and on a timeline.
Tesla Financial Results - Stock
If you are an investor, use Tesla's direct information. If you are a fan, know that Tesla returned a modest profit for the quarter. This has boosted Tesla's stock price from $253 to $301 in early trading. Although this is certainly good news, Tesla's stock was at this same point one year ago. It is about 20% lower than the past year's high, and much lower than the price was in mid-2017 when the stock first reached its historic peak points. Any increase is good, at any point in time. Check back in a few days to see if the price change is sustained.
Tesla Revenue - Demand
Tesla's revenue declined slightly. That is important because many still see the 16-year old company as a "technology startup." It isn't in this writer's view, but either way, a growing company should see growing revenue. More vehicles sold should mean more money coming in. Does this mean that Tesla is in some trouble? Not yet. Tesla is making changes to boost its revenue. For example, the company is now charging new owners for use of the Supercharger network. Is there any bad sign? Sure. The Model 3 is less expensive to purchase and Tesla has chosen to offer discounts on the car to boost sales. A company that has more buyers than cars does not need to discount.
Tesla Isn't Just A Car Company
Tesla's solar business is still weak, despite a quarter-on-quarter growth. The energy storage business continues to grow. Do these businesses boost or drag Tesla overall? Check out what Renewables Now had to say.
Tesla Vehicle News
Tesla says that its cars will get a slight boost in power from some changes it is making. This is coal to Newcastle in our opinion since the cars have an abundance of thrust now. Still, who doesn't like a bit more power? Tesla is also reporting that its autonomous driving systems will see big leaps in capability in the coming year. We'll wait and see.
Overall, this new Q3 result is better than expected news and should bring a smile to the face of any Tesla fan, owner, or investor.
In addition to covering green vehicle topics, John Goreham covers safety, technology, and new vehicle news at Torque News. You can follow John on Twitter at @johngoreham.
Top of page image by the author. Stock chart courtesy of Google and NASDAQ.
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Comments
Well I am always pleased and
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Well I am always pleased and surprised when I see a (cautiously) optimistic report from you on Tesla. You didn't mention the fact that the China Gigafactory is up and running, which is very good news for Tesla's future revenues because China and Asia is a much larger EV market than the U.S. So U.S. Model 3 and Model Y production will not have to cover those Asian market customers on top of U.S. and European buyers. Regarding Tesla Solar, the recent power outages in California forced by PG&E here have brought a renewed interest in reliable power, meaning solar power with battery backups, and I am seriously looking at adding Tesla Solar to my home now.
Good news all around, with
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Good news all around, with the important caveats you note on previous stock highs and "wait + see" with the solar project. I hope the latter gets more attention now that they've figured out Model 3 production and can reallocate resources somewhat. Model Y being at least a quarter ahead of schedule is also big news, to my mind. Getting to market before the likes of Ford and VW with a competitively-priced, more spacious crossover is going to be big business, especially as those manufacturers still have the full tax credit to leverage. 2020 is going to be an exciting year for the next phase of EV adoption.
"A company that has more
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"A company that has more buyers than cars does not need to discount."
Only in the absence of quarterly sales expectations/targets that massively affect the shareprice.
Otherwise discounting makes perfect sense to stimulate certain kinds of demand e.g. local sales (quicker delivery for quarter end), clearing surplus inventory of certain specs, or cushioning the loss of EV incentives