Tesla's Q3 Zooms Past Forecasts and Previous Records
Breezily beating Wall Street's consensus forecasts, electric vehicle (EV) maker Tesla (NASDAQ: TSLA) jolted the entire electric car sector back to life with its positive third-quarter 2021 report on Oct. 20. Shares initially dropped about 2% in after-hours trading, before achieving liftoff over the next several trading days. While its massive deal with Hertz Global Holdings (OTC: HTZZ) is making headlines, there are also potential long-term growth indicators in its Q3 results that are worth a closer look.
Elon Musk's EV enterprise beat average analyst expectations when it reported its Q3 results, not only in revenue and earnings but in several other important metrics. Revenue exceeded forecasts by only a hair, but still skyrocketed 56.9% year over year to approximately $13.8 billion. Adjusted earnings per share of $1.86 registered a 15.5% positive surprise above Wall Street's consensus, while jumping 145% year over year. Automotive revenue climbed 58% year over year to slightly more than $12 billion. Regulatory credits accounted for only $279 million of that revenue, decreasing 30% year over year, a decline showing it is automotive sales driving Tesla's gains, and not merely government support as some naysayers claim.
Despite being in the midst of building its Berlin area gigafactory, the company also slashed its total debt to $2.1 billion. This is a 74% decrease year over year from the almost $8.1 billion in total debt it carried as of Sept. 30, 2020, and a roughly 47% quarter-over-quarter decrease from its $3.99 billion in debt at the end of Q2 2021.
Source Fool.com
