Tesla reports third-quarter earnings, Elon Musk addresses Twitter takeover and possible recession

Picture Courtesy: NYPost

Tesla reported $1.05 in adjusted EPS, ahead of expectations of 99 cents, on revenues of $21.45 billion, lighter than the $21.96 billion expected. Net income reached $3.33 billion, more than double from a year ago, while automotive revenue rose 55% from the previous year's quarter.

Elon Musk answered shareholder questions about electric vehicle demand and a possible share buyback. He said, “I can't emphasize enough we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see. The factories are running at full speed and we're delivering every car we make, and keeping operating margins strong.”

Elon compared Tesla to Apple and said, “I'm of the opinion that we can far exceed Apple's current market cap. In fact I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined. That doesn't mean it will happen or will be easy.”

Regarding his Twitter takeover, he said, "I think it's an asset that has sort of languished for a long time but has incredible potential." He later added, "The long-term potential for Twitter is an order of magnitude greater than its current value.”

Regarding recession fears he said, “China is experiencing a recession of sorts. North America's in pretty good health, although the Fed is raising interest rates more than they should, but I think they'll eventually realize that and bring them down again.”