Tesla reports record profits and sales
Carmaker hails figures achieved despite semiconductor shortage and supply chain issues
Tesla Motors enjoyed its largest net earnings on record in the third quarter, bolstered by rising sales in China and the ongoing shift towards electric vehicles.
For the three months to the end of September, the company reported earnings per share of $1.86 on revenue of $13.76bn, instead of the $1.59 per share on $13.63bn analysts polled by Refinitiv had forecast. Despite revenue rising to a record high, it underwhelmed the $14bn figure forecast by FactSet.
Its earnings of $1.62bn stood five times greater than the $331m generated in the third quarter of 2020 on revenue of $8.77bn.
The California-based firm’s sales of 241,400 electric vehicles represented a 72% increase from the 140,000 delivered in the third quarter of 2020. With around 627,300 vehicles sold thus far, Tesla has already beaten last year’s total sales figure of 499,550.
Increased sales of Tesla’s less-expensive Models 3 and Y and reduced sales of the more expensive Models S and X prompted a 6% fall in the automaker’s sales price in the quarter.
Keeping up the pressure
The overall rise in sales came despite rising manufacturing costs in both the United States and China and the sustained shortage of semiconductor chips, which has hampered the global auto industry since 2020.
In a statement, Tesla maintained: “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. We believe our supply chain, engineering and production teams have been dealing with these global challenges with ingenuity, agility and flexibility that is unparalleled in the automotive industry.”
Chinese sales and Texas pivot
The bumper figures come in the wake of CEO Elon Musk’s announcement that Tesla will relocate its headquarters to Austin, Texas. The firm stated that construction of its new factory is proceeding on schedule and that it is currently preparing equipment and “fabricating our first pre-production vehicles.”
The firm’s Freemont, California factory can produce 500,000 Model 3 and Y cars a year, only 50,000 more than its new Shanghai factory.
Tesla nonetheless stated: “For all of Q3, China remained our main export hub. Production has ramped well in China, and we are driving improvements to increase the production rate further.”
By 10:15 (EST), Tesla traded up by 3.3% at $895.47, within touching distance of its all-time high.