Tesla Stocks Slump in the After Hours Despite Record Profit

On Thursday, shares of Tesla Inc. slumped in the after-hours trading after it posted a third-quarter record profit that shook off supply chain issues. 

Accordingly, the electric vehicle manufacturer plummeted 1.64% or 14.21 points to $851.59 per share. 

Consequently, Tesla opposed its Wednesday hike of 0.18% or 1.53 points to $865.80 per share. 

Moreover, the sudden increase in deliveries fuelled its recent results, beating market expectations. 

Subsequently, its earnings climbed to $1.86 per share from the second-quarter data of $1.45. Remarkably, it beat the analysts’ estimate of $1.64. 

Correspondingly, its revenue increased to $13.80 billion from the previous number of $11.96 billion. Remarkably, above 96.00% of sales were attributed to its Model 3 and Y.

However, it slightly came in lower than the forecasted figure of $3.90 billion. 

At the same time, its operating margins increased to 14.60% from the prior rate of 11.00%. 

Then, the firm’s automotive gross margin, a leading indicator of profitability, elevated to 28.80% from the 25.80% in the previous quarter. 

Also, it edged up to 27.00% from the same period last year. 

Earlier this month, Tesla announced that it handed a record high of 241,300 cars worldwide, jumping to 73.20% year-over-year. 

Overall, this brought to year-to-date deliveries of about 627,500, topping the 500,000 deliveries last year. 

Furthermore, Tesla expected to touch a 50.00% average annual growth in car deliveries over a multi-year horizon.

Accordingly, analysts explained that the strong report mirrored the growing shift by car buyers to electric vehicles. 

Despite the positive result, Tesla warned the market that the company still faces struggles with supply bottlenecks.

Meanwhile, its fourth-quarter earnings report is estimated to be published on January 25, 2022.

US Stocks Making Big Moves as Tesla Drops

Aside from Tesla, other firms posted headlines in the extended trading session. 

In particular, the computer hardware company IBM plunged 4.26% or 6.05 points to $135.85 per share after it missed earnings estimates. 

Similarly, the casino operator Las Vegas Sands slipped 1.97% or 0.78 points to $38.74 per share.

Also, the semiconductor business Lam Research lowered to 2.59% or 14.65 points to $550.85 per share. Its decline followed its disappointing quarterly report.

Conversely, after a better-than-expected earnings report, the railroad giant CSX Corporation improved 2.87% or 0.99 points to $35.45 per share.

Meanwhile, GM Motors, a rival of Tesla, also weakened to 0.08% or 0.05 points to $57.62 per share. 

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