Tesla reports Q3 earnings

Yahoo Finance's Jared Blikre talks Tesla as the automaker reports its Q3 earnings

Video Transcript

ADAM SHAPIRO: Tesla has crossed the wire. Let's bring in Jared Blikre because he's crunching those numbers for us. What's going on, Jared?

JARED BLIKRE: Seeing the stock both up and down and then up a little bit again, but not much net movement. Now it was a miss on the top line, revenue coming in a little bit short of Wall Street expectation. That number is 13.76 billion, up 57% year over year, but short of the 13.91 billion the Street was expecting. On adjusted EPS, nice beat there-- $1.86, up $0.76 year over year. Estimate was for about $0.20 lower at $1.67.

Also, really nice improvement or beat on automotive gross margin by about 200 basis points. That coming up to 30.5% versus 27.7% a year ago and beating the estimate on Wall Street by about 200 basis points to 28.4%. That was what Wall Street expected. Also, their third quarter Capex was a little bit heavy, 1.82 billion. Estimate was for lower at 1.37 billion.

They also saw a Bitcoin related impairment of $51 million in the third quarter. And we know they hold a large amount of Bitcoin on their balance sheet. With Bitcoin at record highs today, if Bitcoin were to close at this level at the end of this quarter, it would not be an impairment.

Also, they have a statement on how EV demand is continuing to go through a structural shift. And this is a quote. "We believe the more vehicles we have on the road, the more Tesla owners are able to spread the word about the benefit of EVs. While Fremont factory produced more cars in the last 12 months than in any other year, we believe there is room for continued improvement. Additionally, we continue to ramp gigafactory in Shanghai and build new capacity in Texas and Berlin." So, again, miss on the top line there, but a bit on the bottom line. And the shares just fluctuating in after hours trading.

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