While the rest of the electric vehicle market struggled, Tesla (TSLA) defied the odds. Last night, the stock gained around 12% after the company posted third-quarter results. What did the market like, despite the mixed results?
Tesla learned $0.72 in earnings per share non-GAAP. Revenue grew by 7.8% Y/Y to $25.18 billion. Markets liked the increase in free cash flow of $2.74 billion, up from $848 million last year.
Tesla is thriving compared to EV pure-play firms. Energy generation and storage revenue grew by 52% Y/Y while service revenue increased by 29%. The stock market is pricing in its prospects based on its strategic updates. The firm plans to launch more affordable EVs by the first half of next week. Despite promising affordable Model 3s a few years ago, the market is optimistic that the firm will have an affordable version on the market.
The Cybertruck continues to resonate with consumers. It became the third best-selling EV in the U.S. in the quarter. Furthermore, the firm will expand its vehicle lineup. It will offer new trims and paint options for the Model 3/Y.
Tesla’s truck EV success is bad news for Rivian Automotive (RIVN) and Ford Motors (F). Rivian is struggling to sell units at higher volume, while Ford Lightning demand risks weakening.
