Tesla Q3 earnings miss estimates

Tesla's (TSLA) third quarter results fell short of analyst estimates. The EV maker reported adjusted earnings $0.66 per share compared to estimates of $0.74. Revenue of $23.35 billion missed Wall Street expectations of $24.06 billion. The company also says they are on track to deliver the Cybertruck later this year. Yahoo Finance's Julie Hyman and Josh Lipton break down the report.

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Video transcript

JULIE HYMAN: Well, we got earnings coming out from Tesla in the past few moments here. And Tesla earnings per share missing estimates here coming in at $0.66. Analysts have been predicting $0.74 in earnings there.

A couple of the other headlines that we're seeing here coming out from the earnings report, the company says Cybertruck deliveries are on track for later this year. We've heard that before. So we'll see if they actually start to roll off the line revenue, as you can see also coming in a little bit short of estimates here. The company staying fast to its production target of 1.8 million vehicles this year. That is a reiteration, and something that it has repeated time and time again.

A lot of focus here has been on the automotive margin number that we've talked a lot about, with Tesla cutting prices. Elon Musk, the CEO of course, has said he is sort of willing to put up with that, if he can get more volume and more sales out there of Teslas. I have not yet seen that automotive margin number, still waiting for that. And of course, waiting for other commentary that we're going to get here.

JOSH LIPTON: Yeah. The margin was key. Obviously, as you said, Julie, Musk just playing the volume game. Volume, volume, volume, even if he has to give up some profit margins.

Interesting, we just spoke to Dan Ives at Wedbush yesterday. Of course, big Tesla bull. And we asked him, do you think the price cuts are now in the rear-view mirror? And Dan indicated he thought most of those cuts were in the rear-view mirror. If that's true, that would be good for margins, potentially looking ahead.

I think that Cybertruck news is also really interesting, trying to get some date there. Of course, you're also interested in what's the price of the Cybertruck. That bogey seem to be shifting the price, and what you think ultimately demand would look like. We know bulls are very excited about the Cybertruck.

They think there is going to be strong demand. And they think that would be a tailwind coming up next year. So very interested on the call to hear what Musk has to say about that as well.

JULIE HYMAN: Yes, most definitely. I'm going through the bigger shareholder deck, the slide deck here, to see if we can get that automotive margin number that we have been looking for. I'm seeing some of the other margin figures. Not yet seeing that automotive margin in particular. So we will circle back with you, and give you that number when we do get it.

But even out of the gate, here, we're seeing Tesla shares already turn higher. So we'll keep you posted on what is going on here. It looks like gross margin for the company at 17.9%. So we'll see how that is versus estimates.