Last week, Tesla (NASDAQ:TSLA) released its financial report, which once again amazed the four. Although the entire automobile manufacturing industry faced severe challenges, Tesla's sales and profits hit record highs.
almost all indicators are setting records, but the supply chain is always a problem
Tesla has achieved profitability for nine consecutive quarters. Meanwhile, its sales rose 57% to $13.8 billion in the three months ended September 30, with adjusted earnings per share reaching $1.86, surpassing the analytical average estimate of $1.67.
In particular, in the case of tight global supply chains and frequent shutdowns in the automotive industry, Tesla's gross profit margin reached 28.8% and operating profit margin reached 14.6%, which impressed Wall Street analysts.
In the third quarter, Tesla's global delivery number reached 241,300 vehicles, a record high. Tesla currently produces Model S, X, 3 and Y at its factory in Fremont, California, and Model 3 and Y at its factory in Shanghai. Among them, more than 96% of sales in the quarter came from Model 3 and Y-shaped models.
But strong third-quarter results failed to push Tesla's stock price to rise further.
Tesla closed at $909.68 on Thursday, up 1.75%.
Tesla's stock price weekly chart, source: Yingwei Finance Investing.com
The reason for the cold market response may come from Tesla itself. The company warns that supply chain disruptions could impact its ability to increase production for the rest of the year. Tesla Chief Financial Officer Zachary Kirkhorn said on an analyst call:
"Our factory has been unable to operate at full capacity due to parts out of stock and unstable logistics conditions. Customers have to wait longer to get the car."
Zachary Kirkhorn also said that due to rising commodity and labor costs, the company still needs to continue to reduce spending.
"We must overcome cost growth beyond our control."
is too high in valuation
In addition to supply chain issues, Tesla's high valuation may also amplify the above flaws in the financial report. At the same time, given that Tesla's stock price may basically reflect expectations for strong performance after a strong surge in the past quarter.
Looking ahead to the future market, considering that Tesla has become the most expensive stock in the New York Stock Exchange FANG+TM index, it may be a slow and gradual process even if its stock price continues to rise.
Bernstein gave Tesla a "under-market" rating in a report released yesterday, and the agency said investors should be cautious about Tesla.
"We still have a hard time justifying Tesla's valuation, which exceeds all other major automakers, which seems to mean that Tesla will have huge sales and profitability in the future, and it is unprecedented in the industry."
Bank of the United States also holds a similar view, emphasizing Tesla's very high valuation.
"While Tesla's third-quarter performance and execution are encouraging, we worry that its stock price may have been set to perfect level, so that the latest performance may not be enough to make the bulls bullish."
Conclusion
Tesla's third-quarter report is extremely impressive, and compared with other automakers, this financial report shows Tesla's outstanding production capacity. But the financial report failed to boost stock prices, mainly because of market concerns that Tesla will not be able to get rid of the negative impact of global supply chain disruptions and future rising costs.
