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TSLA Stock Down 1% in Pre-market after Tesla Reports Q3 2021 Earnings

UTC by Steve Muchoki · 3 min read
TSLA Stock Down 1% in Pre-market after Tesla Reports Q3 2021 Earnings
Photo: Depositphotos

Tesla stock has gained approximately 104.86%, 22.69%, 32.12%, and 15.14% in the past year, YTD, three months, and one month respectively.

Tesla Inc (NASDAQ: TSLA) stock was trading around $851.80, down approximately 1.62% as of October 20, 2021, 7:59 p.m EDT as teh premarket hours began TSLA stock is 1% down, exchanging hands at $857. The American tech company that has an interest in electric cars, solar and clean energy reported 2021 third-quarter earnings results on Wednesday. For the Q3, Tesla reported its revenue grew by 57% YoY fueled by growth in vehicle delivery. In an earlier update, the company said that it produced approximately 238,000 vehicles and delivered over 240,000 vehicles.

According to the Q3 report, the company reported its operating income improved to $2.0B compared to the same period last year, resulting in a 14.6% operating margin.

However, the company noted that its cash reserve decreased by the end of the third quarter. “Quarter-end cash and cash equivalents decreased to $16.1B in Q3, driven mainly by net debt and finance lease repayments of $1.5B, partially offset by the free cash flow of $1.3B. Our total debt excluding vehicle and energy product financing has fallen to just $2.1B at the end of Q3,” Tesla noted in the Q3 earnings report.

Nonetheless, Tesla clarified that it has sufficient liquidity to see it through its long-term plan and roadmap. Worth noting, the company still holds Bitcoin in its balance sheet, whereby it reported having digital assets worth $1.26 billion as of September 30, when BTC was trading around $40k. However, the value has since risen to around $64k as of today, thereby giving the company’s BTC value at more than $1.26 billion.

TSLA Stock and Performance of Tesla in Q3 2021

Tesla stock has gained approximately 104.86%, 22.69%, 32.12%, and 15.14% in the past year, YTD, three months, and one month respectively through Wednesday. The company is optimistic the future is brighter than its past success, owing to the increased EV adoption.

“EV demand continues to go through a structural shift. We believe the more vehicles we have on the road, the more Tesla owners can spread the word about the benefits of EVs. While Fremont factory produced more cars in the last 12 months than in any other year, we believe there is room for continued improvement. Additionally, we continue to ramp Gigafactory Shanghai and build new capacity in Texas and Berlin,” the company noted.

However, according to a survey conducted by MarketWatch, TSLA shares received an average rating of Hold from 41 ratings. The average target price from the 41 ratings is 722.29. Nevertheless, Tesla is never short of surprises to the market as historically proven.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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