Tesla reported quarterly earnings and revenue that beat analysts’ expectations on Wednesday.
Here’s how the company did compared to what Wall Street expected:
- Adjusted loss per share of $1.33 vs. $1.82 expected, according to Thomson Reuters
- Revenue: $2.79 billion vs. $2.51 billion expected, according to Thomson Reuters
The company reported a narrower than expected adjusted loss of $1.33 per share on $2.79 billion in revenue.
The company said Model 3 production was on track to achieve previously announced targets.
Tesla expects positive Model 3 gross margin in the fourth quarter, and is targeting 25 percent margins in 2018.
The company said its deliveries grew 53 percent compared to the same quarter last year, even though overall industry sales of luxury cars remained flat.
In early July, the company reported deliveries of just over 22,000 vehicles for the quarter, down from the 25,000 delivered in the previous quarter. The company later said 3,500 vehicles were in transit and would be counted in the third quarter.
Reservations for the recently rolled out Model 3 sedan, which starts at $35,000, have grown to more than 500,000, up from the 373,000 the company reported in the spring of 2016, and more than the total sales of any entry level luxury car.
Yet, analysts still have concerns over whether Tesla can ramp up production quick enough. There also are worries over whether the Model 3 will eat into sales of its higher-end cars, and if Tesla will be able to fend off eventual competition from experienced competitors.
Some analysts have noted that demand for Tesla’s S and X models is slackening, citing inventory numbers that suggest a possible pause in demand for Tesla’s higher-end cars ahead of the Model 3 rollout. If this trend holds, it could be an indication that the Model 3 will hurt sales of Tesla’s pricier models.