📈Tesla rallies almost 10% after session on Wall Street as Q3 earnings pleased Wall Street

Tesla (TSLA.US) reported Q3 earnings report today. Sales came in slightly lower than anticipated, however earnings and free cash flow came in higher, than Wall Street expected. Shares are up almost 10% in after-hours trading, after dropping as much as 1.98% during the US session. Overall positive reaction to Tesla's report is quite positive start of the US Magnificent 7 earnings season, but despite that US100 is losing almost 1.15% at the moment, as strengthening dollar pressured Wall Street. On the other side, index defended 20,000 points level and is now set at almost 20,300 points.

• Revenue: $25.18B vs $25.43B exp. and $23.35 in Q3 2023 (8% growth)
• Earnings per share (EPS): $0.72 vs $0.60 exp. and $0.53 in Q3 2023
• Net income: $2.17 billion vs $1.85 billion in Q3 2023
• Free Cash Flow (FCF): $2.47B vs $1.61B exp.

Top Q3 earnings news

• Company expects slight growth in vehicle deliveries in 2024  (Wall Street speculated about minus YoY dynamics)

• Automotive revenue up 2% YoY to $20 billion vs $19.63 a year earlier. Huge, 52% YoY soar of storage and energy generation revenues, actually at $2.38 billion. Other services and revenues came in also much higher, at almost 30% yearly growth rate (non-warranty repairs)

• Profit margins bolstered by $739 million in regulatory credit revenue during Q3 (credits from automotive companies, which are almost 100% margin for Tesla, as zero-emission brand)

• As of the end of September 2024, Tesla had produced 469,796 (up 6% y/y). It has not disclosed detailed plans to introduce budget EV models, but plans launches for early 2025

• Tesla has not sold a single one of its Bitcoin holdings, worth more than $760 million. It explained that the recent BTC transfers were related to the audit. It also did not comment on how a potential win by Trump, who is hostile to electricians (but favorable to Musk), could affect its business.

TSLA.US chart (D1 interval)

Tesla is coming back above EMA200 resistance zone (red line, at $218 level. It's worth noting that despite companies suggestions, still positive, YoY deliveries are not guaranteed, and overall sales number were weak, despite deliveries growth.

Source: xStation5

Source: XTB Research, Bloomberg Finance L.P.

Source: XTB Research, Bloomberg Finance L.P.