News & Analysis

Tesla Q3 revenue falls short of Wall Street expectations – price target raised by Bank of America

20 October 2022 By Klavs Valters

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Tesla Inc. (NASDAQ:TSLA) reported its Q3 financial results after the closing bell on Wednesday.
World’s largest automaker exceeded earnings per share (EPS) estimates for the quarter but fell short on revenue.
Revenue reported at $21.454 billion (up by 56% year-over-year) vs. $21.982 billion expected.
EPS at $1.05 per share (up by 69% year-over-year) vs. $1.001 per share estimate.
”The third quarter of 2022 was another strong quarter with record revenue, operating profit and free cash flow. In the last 12 months, our free cash flow exceeded $8.9B. Our operating margin reached 17.2% in Q3. We achieved an industry-leading operating margin’ while encountering material headwinds YoY. Raw material cost inflation impacted our profitability along with ramp inefficiencies from Gigafactory Berlin- Brandenburg, Gigafactory Texas and 4680 cell production. Also, the U.S. Dollar (USD) continued to strengthen compared to all other major currencies in our markets.”
”We remain focused on increasing vehicle production as quickly as possible, by increasing our weekly build rate in Fremont and Shanghai and progressing steadily through the production ramps in Berlin and Texas. Logistics volatility and supply chain bottlenecks remain immediate challenges, although improving. We continue to believe that battery supply chain constraints will be the main limiting factor to EV market growth in the medium and long terms. Despite these challenges, we expect to continue to deliver every vehicle produced while maintaining strong operating margins,” Tesla said in a letter to shareholders.
Bank of America raised its price target for Tesla from $315 to $325 on Wednesday.
“In light of capital markets volatility, we would note that Tesla’s self-funding status is a notable advantage versus some start-up EV automaker competitors,” the bank said in a note to investors.

The stock was down by around 3% on Thursday, trading at $214.80 a share.

Stock performance

  • 1 month: -26.10%
  • 3 months: -21.51%
  • Year-to-date: -39.46%
  • 1 year: -28.44%

Tesla price targets

  • Bank of America: $325
  • Deutsche Bank: $355
  • Wedbush: $300
  • RBC Capital: $325
  • Wells Fargo: $230
  • Morgan Stanley: $350
  • Mizuho: $370
  • Goldman Sachs: $333

Tesla is the 6th largest company in the world with a market cap of $668.42 billion.

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Sources: Tesla, TradingView, MetaTrader 5, Benzinga, CompaniesMarketCap, Twitter

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