Insights

Why Tesla stock jumped on Thursday

The electric car maker’s soaring earnings in a difficult operating environment has investors cheering.
The post Why Tesla stock jumped on Thursday appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla (NASDAQ: TSLA) jumped on Thursday. The growth stock was up 3.3% as of 12:50 p.m. EDT.

The stock’s gain comes after the company reported better-than-expected third-quarter results, featuring non-GAAP (adjusted) earnings per share that more than doubled year over year.

Model Y. Image source: Tesla.

So what

On Wednesday afternoon, Tesla said its revenue rose 57% year over year to $13.8 billion, driven by a 73% jump in vehicle deliveries. Adjusted earnings per share increased 145% year over year to a record $1.86. These results compare to analysts’ consensus forecasts for revenue and adjusted earnings per share of $13.6 billion and $1.59, respectively.

The company’s surging sales and robust financial results are particularly impressive considering the current challenging operating environment.

“A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed,” Tesla said in its third-quarter shareholder letter. “We believe our supply chain, engineering and production teams have been dealing with these global challenges with ingenuity, agility and flexibility that is unparalleled in the automotive industry.”

Now what

Importantly, Tesla reiterated its guidance for deliveries to grow at an average annualized rate of more than 50% over “a multi-year horizon.” But management warned that its rate of growth will ultimately be dependent on “the successful introduction of many new product and manufacturing technologies in new locations, ongoing supply chain related challenges and regional permitting.”

While Tesla didn’t provide much insight into what to expect from vehicle deliveries in Q4, the automaker certainly seems on track to grow total deliveries this year at a rate that exceeds 50% growth over 2020. Management did say in the company’s third-quarter earnings call that Tesla exited Q3 at an annualized production run rate of more than 1 million vehicles per year. “The increase in production rate has primarily been driven by further ramping of the Model Y at our Shanghai factory,” said Tesla CFO Zach Kirkhorn.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock jumped on Thursday appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

EV stocks may not be as infallible as you think

Tesla (NASDAQ:TSLA) breaks record for cars delivered in September quarter

This Aussie fund manager values Tesla (NASDAQ:TSLA) share price at over US$3,000

Top 5 global shares held by Aussie investors in Q3 revealed: eToro

Tesla share price climbs following latest disruptive development

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!