Tesla Earnings, Profit Margins Beat Street Forecasts Amid Price War
"We are focusing on cost reduction, new product development that will enable future growth ... we believe we have the right ingredients for the long-term success of the business through a variety of high potential project," Tesla said.
Updated at 4:40 EDT
Tesla (TSLA) - Get Free Report posted better-than-expected second quarter earnings Wednesday, while holding profit margins higher than Wall Street forecasts, even as the carmaker's price cuts continued to pare its overall bottom line.
Tesla said adjusted earnings for the three months ending in June were pegged at 91 cents per share, up 19.7% from the same period last year and topping the Street consensus forecast of 82 cents per share.
Group revenues, Tesla said, rose 47.2% from last year to a record $24.927 billion, just beating of analysts' forecasts of a $24.5 billion tally.
Adjusted automotive margins were 18.7%, Tesla said, up from the 18.3% figure recorded over the first quarter but down from last year's second quarter tally of 22.4% following a series of price cuts in its biggest global markets. Wall Street forecasts hovered between 17.5% and 17.9%.
Gross margins were 18.2%, down from 25% over the same period last year and 19.3% over the first quarter.
Auto GM (ex credits) of 18.1% beat the key Street line in the sand 17.5% bogey and a main focus on investors on this print. All focus now on conf call and margins/“price cuts done” debatable point. Overall solid results and in line with our
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