Tesla's Earnings Shock: Record Gains Crush Short Sellers with $4 Billion Blow
1min read Tesla's recent third-quarter earnings report has surpassed expectations, significantly impacting the stock market. The company's shares surged following the announcement, leading to substantial losses for short sellers amounting to $4 billion over just two days, according to S3 Partners.
The earnings report revealed Tesla's adjusted earnings per share at $0.72, exceeding analyst forecasts of $0.60. Although revenue came in at $25.18 billion, slightly below the anticipated $25.4 billion, it marked an increase from previous quarters. Notably, Tesla's profit margin stood at 19.8%, well above the 16.8% that analysts had projected.
This unexpected performance caused Tesla's stock to climb by 22% on the Thursday following the report, marking its most significant single-day gain since 2013, further boosting CEO Elon Musk's net worth by $33.5 billion.
Tesla has had a history of volatile stock performance, often tied to surpassing or missing earnings expectations. Earlier this year, stock spikes post-earnings also led to significant losses for short sellers, highlighting the risks involved in betting against the automaker.
Despite these positive results, Tesla's stock experienced fluctuations soon after, influenced by investor reactions and broader market conditions. The company plans to increase vehicle sales by 20-30% next year, driven by advancements in autonomous technology and the introduction of more affordable models.
Additionally, manufacturing costs per vehicle have reached a historical low, contributing to Tesla's enhanced profitability. These improvements have encouraged analysts like those at Canaccord Genuity to revise price targets and maintain optimistic ratings.
