Tesla earnings rebound but 50% growth target at risk

CNN/Stylemagazine.com Newswire | 10/19/2022, 4:43 p.m.
Tesla posted improved third quarter earnings that were generally in line with Wall Street forecasts, but profits were still just …
Tesla pictured on September 22, in Santa Monica, California, posted improved third quarter earnings that were generally in line with Wall Street forecasts, but profits were still just short of where they were at the start of the year before supply chain problems ate into its production and sales. Mandatory Credit: Allison Dinner/Getty Images

Originally Published: 19 OCT 22 16:17 ET

Updated: 19 OCT 22 16:58 ET

By Chris Isidore, CNN Business

(CNN) -- Tesla posted improved third quarter earnings that were generally in line with Wall Street forecasts, but profits were still just short of where they were at the start of the year before supply chain problems ate into its production and sales.

In its earnings summary issued to investors Wednesday, Tesla did not say whether or not it still will be able to reach its goal, set at the start of year, of a 50% increase in car deliveries this year compared to 2021.

It did say that "over a multi-year horizon, we expect to achieve a 50% average annual growth in vehicle deliveries," which appears to back off slightly from its target of 50% growth this year.

"Despite losing more builds in Q3 than expected, we're still pushing to reach 50% growth this year," Tesla CFO Zachary Kirkhorn said when discussing second quarter results with investors in July. "This target has become more difficult but it remains possible with strong execution."

The company has another presentation for investors scheduled for later this evening.

The company posted adjusted earnings of $3.7 billion, up 75% from a year ago, but still 2% short of the record earnings it reported in the first quarter. It was better than the $3.5 billion earnings forecast by analysts surveyed by Refinitiv. Revenue did reach a record $21.5 billion, up 56% from a year ago, but short of the $22 billion forecast by analysts.

Shares of Tesla were down about 3% in after-market trading following the result. Shares of Tesla had already lost 37% so far this year through Wednesday's close.

-- This is a developing story. It will be updated.

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