TESLA YIELDS RECORD-HIGH PROFIT DESPITE PARTS SHORTAGE, SHIP DELAYS

Thu 21 October 2021:

Tesla’s third-quarter earnings were released after the market closed on Wednesday, and the company surpassed expectations on both the top and bottom lines.

American electric carmaker Tesla achieved its best-ever net income and profit in the third quarter of this year, according to a statement.

Tesla’s net income jumped 389% year-on-year to $1.62 billion in July-September this year, the statement said on Wednesday.

Earlier this month Tesla said it delivered a record 241,300 electric vehicles in the third quarter even as it wrestled with the shortages that have hit the entire auto industry. Most automakers reported sales declines in the U.S. last quarter due to chip and other shortages, including General Motors and Ford.

The company recorded $13.8 billion in total revenues, up 57% in the same period. This owed to the growth in vehicle deliveries and other parts of the business, it noted.

The gross profit of the company soared 77% on an annual basis to $3.7 billion in the third quarter.

In a shareholder deck that Tesla released before a call to discuss Q3 results, the company said, “A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed.”

Planning to expand its manufacturing capacity as quickly as possible, the company said “over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries,” depending on equipment capacity, operational efficiency as well as the capacity and stability of the supply chain.

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