Category: Companies / November 5, 2013 5:10 PM EST
Tesla Motors Inc. (NASDAQ: TSLA) reported fiscal third-quarter earnings excluding items of 12 cents per share on revenue of $603 million, compared with a loss of 92 cents a share on revenue of $50 million a year earlier.
Wall Street had expected the company to report earnings excluding items of 11 cents a share on revenue of $535 million, according to analysts polled by Reuters.
Despite beating Wall Street expectations on earnings and revenue, shares still plunged over 10 percent on the news after the company said it finished the third-quarter with a record of slightly over 5,500 Model S deliveries, below analysts’ expectations. In addition, the electric-car maker’s fourth-quarter guidance also fell short of Wall Street estimates.
We achieved record levels of Model S production, deliveries and vehicle gross margin in Q3,” said Chairman & CEO Elon Musk in the company’s third-quarter earnings statement. “This performance drove positive free cash flow and our third consecutive quarter of non-GAAP net income, while supporting substantial investments in future growth and customer support infrastructure.”
“Model S is becoming more pervasive every day,” Musk added. “Over 19,000 Model S owners are driving in excess of 700,000 miles per day in over 20 countries and have now driven their cars more than 100 million miles. As more people see our car on the road, take a test drive or talk with another Model S owner, more demand is created for our product. Demand exceeds supply, despite no advertising, no discounts and no paid endorsements.”
Shares of Tesla Motors tumbled 10.30 percent to $158.60 in extended-hours trading.
The Dow Jones industrial average fell 20.90 points, or 0.13 percent, to close at 15,618.22. The S&P 500 was down 4.96 points, or 0.28 percent, to end at 1,762.97. The Nasdaq Composite Index rose 3.27 points, or 0.08 percent, to finish at 3,939.86.
Video Credit: Reuters