Quarterly financial performance of Tesla surges, causing a leap – will the momentum continue?
Stock Market Churn: Tesla's Q3 Earnings Drop
Tesla has had a tumultuous ride lately, with its stock price plummeting due to Elon Musk's Twitter shenanigans and dismal delivery figures, only to bounce back strongly pre-quarterly earnings release.
Soaring Expectations
The market hype for Tesla was palpable. It wasn't just about the expected EPS of 1.15 USD, but primarily Elon Musk's reassurances on his Twitter CEO position and potential succession plans for Tesla. Rumors had been circulating about Musk building a successor for the automaker.
Satisfying Results
Despite delivery numbers putting a damper on things, Tesla managed to report impressive earnings on Wednesday night, with EPS at 1.19 USD robustly beating expectations. Although revenue met the consensus, the gross margin in the automotive sector exceeded expectations, reaching a surprising 28.5%.
However, the market reacted mixed. The numbers' positive spin was overshadowed by reduced free cash flow and uncertainty ahead of the upcoming analyst call.
Time to Buy?
Analysts seem bullish on Tesla, with an average price target of 199.60 USD. Yet, the stock's trajectory remains closely tied to the mercurial Elon Musk, who may bring notable volatility with his dual roles as Tesla head and Twitter CEO.
Investors considering a stake should brace for this volatility. For more precise details regarding Musk's role discussions during the Q3 2022 earnings call, it's advisable to review the actual transcript or official investor communications from that period.
By the way: Cathie Wood divests her top stock - should you too?
Disclosure: The author holds direct positions in the aforementioned financial instruments, benefiting from potential price fluctuations resulting from the publication: Tesla.
- The impressive earnings report by Tesla, with EPS at 1.19 USD, might have caught the attention of investors, especially considering Elon Musk's reassurances and potential succession plans for the company, as mentioned on Twitter.
- Despite Tesla's strong earnings, the stock's trajectory could remain volatile, given Elon Musk's simultaneous roles as CEO of Tesla and Twitter, which might influence the company's financial performance.
