Third quarter was a good one
Last night Tesla published its quarterly earnings which were better than Wall Street analysts expedcted. The Gross margin climbed to 19.8% which lead to a beat of EPS expectations. Earnings per share came in with $0.62 vs $0.51 exp. In addition they said that Cybertruck model has reached profitability. All very good news.
Revenues climbed +8% YoY, which is not great but given the weakness of the auto sector in general it’s not bad either.
So as reaction of these nice numbers we are seeing Tesla stock is rising double digit today. Currently we are trading slightly below $250 which is +16% on a daily basis.
My takeaway
I am confident Tesla will manage to get back to acceleration mode. Margins and profitability are improving. The company is well set up and has a lot of great innovations in the pipeline, although it might take a bit longer to bring them to market than what Elon Musk is claiming usually.
My Position is safe and secure and I will hodl on.
