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Tesla Posts Q3 Miss, Shares Drop 5%, Facebook Beats

After the closing bell today, Tesla Inc. TSLA reported a bottom-line miss on better-than-expected quarterly sales. The -$2.92 per share was a bigger loss than the -$2.45 in the Zacks consensus, whereas revenues of $2.98 billion in the quarter surpassed our expected $2.92 billion. Shares immediately sank 5% on the news, putting Tesla shares in the red year to date.

The company's main challenges of late have had to do with the ramping up of its more-affordable Model 3 sedan, which posted a disappointing 222 deliveries in Q3. By now, the plan was to have 1500 or more Model 3s produced per month. In Tesla's letter to shareholders, the company explains the primary bottleneck in production being an issue with the battery module assembly line at Gigafactory 1 in Sparks, Nevada, which has required a redesign.

Tesla still expects a big ramp-up in Model 3 production, however: 5000 cars per week are expected by the end of Q1 2018. Earlier, an even-more ambitious 10K/week production line was expected for some time in the following year.

Model S and X deliveries rose 18% year over year, and including the as-yet paltry output from Model 3, produced north of 26K autos overall in the quarter. Elsewhere, the company looks to make its Solar Roof products a bigger part of the overall Tesla business in 2018, and appears pleased about its Gigafactory 2 ramp-up in Buffalo, NY.

Today marks the third loss in the last four quarters for Tesla. Investors clearly are anticipating big things in the future, but the stock also holds a bevy of short positions, with perhaps more to come following this latest earnings miss. That said, Tesla shares are still up over 50% in the past year, and more than 1500% since the company's IPO in 2010.

Facebook Beats, Laments Foreign Influence

Facebook FB beat earnings on its top and bottom lines after the closing bell, putting up $1.59 per share on $10.33 billion in sales. Its impressive revenue acceleration resulted in 47% year over year growth and 2.07 billion monthly active users. CEO Mark Zuckerberg, in the wake of his company's recent testimony on Capitol Hill whereby Russian influence reportedly affected the 2016 presidential election, suggested profits from future quarters were going to take a hit on security concerns, saying, "Protecting the community is more important than maximizing profitability."

Shares are barely up 1% in late trading following the stellar Q3 earnings results. For more on Facebook's earnings results, click here.

For new results on Restaurant stock earnings, click here.

For more results on Tech earnings, click here.

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