Tesla hits record profit despite parts shortage, ship delays – Honolulu, Hawaii

Honolulu, Hawaii 2021-10-20 19:35:00 –

Detroit >> With a shortage of computer chips and other materials, record electric vehicle sales pushed Tesla to the highest quarterly net profit in history last summer.

The company today announced that it earned $ 1.62 billion in the third quarter, surpassing the previous record of $ 1.14 billion set in the second quarter of this year. Profit was almost five times higher than the $ 331 million Tesla made in the same quarter a year ago.

According to FactSet, revenue of $ 13.76 billion from July to September also set a record, but slightly below Wall Street’s forecast of $ 14 billion.

Except for special items such as stock-based remuneration, Tesla, based in Palo Alto, California, earned $ 1.86 per share, surpassing analysts’ estimates of $ 1.62. CEO Elon Musk has announced that it will relocate its headquarters to Austin, Texas. This is today’s financial results announcement schedule.

However, some of the quarterly profit came from selling regulatory credits to other automakers. Tesla earned $ 279 million in credits during the quarter. Other car makers buy credits when they don’t meet emission and fuel economy standards.

“A variety of issues, including semiconductor shortages, port congestion, and rolling blackouts, are affecting our ability to keep factories running at full speed,” the company said in a statement to shareholders. “We believe our supply chain, engineering and production teams have tackled these global challenges with unmatched ingenuity, agility and flexibility in the automotive industry.”

Earlier this month, Tesla said it delivered a record 241,300 electric vehicles in the third quarter, despite tackling a shortage that hit the entire automotive industry. Earlier, Mr. Musk said Tesla kept its production line up and running, primarily by finding chips from alternative suppliers, scrambling and rewriting some of the software in the car to keep all technologies compatible. I did.

Third-quarter sales were 72% higher than Tesla’s 140,000 deliveries a year ago during the same period.

So far this year, Tesla has sold about 627,300 vehicles. This will definitely exceed last year’s total of 499,550.

Third-quarter sales increased, but average selling prices fell 6% as Tesla sold the cheaper Models 3 and Y, and the cheaper Models S and X.

Tesla also incurred $ 51 million in impairment costs due to the decline in Bitcoin’s holding value.

Wedbush analyst Daniel Ives wrote in a note to investors that Tesla’s delivery and earnings are impressive despite the overhang caused by a shortage of automotive computer chips. He wrote that Wedbush believes that demand has outstripped Tesla’s supply and chip shortages have robbed Tesla’s number of vehicles by about 40,000 vehicles so far this year.

Still, he predicts that Tesla will reach about 900,000 sales this year and about 1.4 million in 2022.

The company said in a statement that the construction of a new plant near Austin is proceeding as planned, preparing equipment and “manufacturing the first pre-production vehicle.”

Centrally located in contrast to Tesla’s other assembly plant in Fremont, California, the plant sends Model Y small SUVs and new cybertruck pickups to densely populated areas on the east coast.

Tesla hopes to rapidly expand its plant’s capacity and said it expects average annual sales growth of 50% over a “multi-year period.”

“Growth depends on our equipment capacity, operational efficiency, and supply chain capacity and stability,” the company said.

Tesla said its Chinese factory remains a major exporter. For vehicles in the standard range, we plan to make a global change to the chemistry of lithium iron phosphate batteries.

Tesla shares fell 0.5% to $ 861.14 in today’s after-hours trading.

Tesla hits record profit despite parts shortage, ship delays Source link Tesla hits record profit despite parts shortage, ship delays

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