Tesla,Inc. (NASDAQ: TSLA) shares have advanced from $778 to $900 since the beginning of October 2021, and the current price stands at $894. Tesla reported better than expected third-quarter results this Wednesday despite supply chain slowdowns and congestion at key ports.
Record revenue and profit
Tesla reported better than expected third-quarter results this Wednesday; total revenue has increased by 56.9% Y/Y to $13.76 billion, while GAAP EPS was $1.44 (beats by $0.28).
Total revenue has increased above the expectations (+60 million), and the company announced that it produced 237,823 vehicles (+64% Y/Y) in the third quarter of the 2021 fiscal year and delivered 241,391 vehicles (+73%).
It is important to say that the company had record revenue and profit in the third quarter despite some supply chain slowdowns and congestion at key ports. Strong results were driven by growth in vehicle deliveries, as well as growth in other parts of the business.
The automotive segment gross margin was 30.5% compared with 27.7% last year and 28.4% last quarter. This benefit primarily comes from higher volumes, even though the company has not been able to run factories at full capacity due to part shortages and logistics variability.
The Model S has returned to a positive gross margin while the company’s management expects this to increase with higher production and the ramp of Model X. The Berlin-Brandenburg Gigafactory remains on track, and Tesla expects to receive final permit approval before the end of this year.
On the other side, the coronavirus pandemic still represents an issue for the automotive industry, together with demand and supply concerns. Several leading car-makers have had temporary plant closures or have announced massive production cuts, while Zachary Kirkhorn, CFO of Tesla, said:
Supply chain challenges, including expedites, continue to provide cost headwinds, as was also the case with FX this quarter. While we see an impact from the rise in commodity and labor costs, we have also been adjusting pricing, which should help to compensate.
Technically looking, Tesla shares could advance above the current price levels in the upcoming day, but this company is not undervalued with a market capitalization of $855 billion.
Tesla stock has seen massive gains since March 2020, the book value per share is around $27, and Tesla trades at more than a hundred times TTM EBITDA.
$900 represents the current resistance
Data source: tradingview.com
The current support levels are $850 and $800; $900 and $950 represent the current resistance levels. If the price jumps above $905, it would be a signal to trade Tesla shares, and the next target could be around $920.
On the other side, if the price falls below $850, it would be a strong “sell” signal, and the next target could be at $800.
Tesla reported better than expected third-quarter results this Wednesday; the company produced 237,823 vehicles despite supply chain slowdowns and congestion at key ports. Technically looking, Tesla shares could advance above the current price levels in the upcoming days, but the risk/reward ratio is not good for long-term investors.