• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 4 hours Tesla Launches Faster Third Generation Supercharger
  • 6 hours Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 1 hour EU has already lost the Trump vs. EU Trade War
  • 8 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 3 hours China's Renewables Boom Hits the Wall
  • 20 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 14 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 21 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 19 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 20 mins ''Err ... but Trump ...?'' #Humph
  • 19 hours Trump Interview On Farage's Radio Show #classy

Tesla’s Global Expansion Is Paying Off

Tesla

Tesla surprised the market last week with an unexpected profit for the third quarter, but a filing to the SEC on Tuesday showed that the electric vehicle (EV) maker saw its sales revenues on its biggest market, the United States, plunged by nearly 40 percent in Q3.

According to Tesla’s filing, the company’s revenues in the United States fell to US$3.127 billion for the third quarter, down from US$5.133 billion for the same period last year. Revenues in China—where the company is building its first Gigafactory outside the U.S. aiming to grow sales significantly—rose to US$669 million from US$409 million.

Tesla’s revenues in Norway and the Netherlands, two other key markets for the EV manufacturer, also rose in Q3 2019 compared to Q3 2018. Revenues in all other markets jumped to US$1.827 billion from US$784 million, suggesting that Tesla is betting big on a global expansion of its offerings.

Earlier this month, Tesla said that it had achieved a record number of around 97,000 deliveries globally in Q3. The figure, while a record, came short of an unofficial target that Elon Musk had set to deliver 100,000 electric cars in the quarter. With just a day left until Q3 ends, Tesla was said to be “a few thousand” vehicles behind that 100,000 vehicle delivery target.

Related: IEA: An Oil Glut Is Looming

Despite the record delivery Q3 quarter for Tesla worldwide, registrations in the U.S. sharply dropped in August and September, in what analysts attributed to the halving of tax credits for Tesla purchases as of July.

According to Philippe Houchois, managing director of automotive equity research at Jefferies, Tesla’s lower registrations in August and September in the U.S. are not surprising at all, given that federal income tax credits available to anyone who purchases a new Tesla Model S, Model X, or Model 3 dropped to US$1,875 effective July 1, 2019, from the US$3,750 tax credit until June 30.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • rudolf d'Ecofacista on October 30 2019 said:
    Tesla (TSLA -2.5%) posts its 10-Q with more details on its Q3 results and expectations for the full year. The company anticipates capital expenditures will be "slightly below" $1.5B vs. prior guidance of $1.5B to $2.0B. Tesla also added from its last 10-Q a more cautionary line about uncertainty with macroeconomic factors and the global industry decline.

    After diving into the 10-Q, Roth Capital lowers Tesla to a Sell rating from Neutral and assigns a price target of $249 to the EV stock. The firm says Tesla's 10-Q indicates that the gross margin gain in Q3 was driven by one-time items such as warranty adjustments. The Seeking Alpha community beat Roth to the punch on that one.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play