Thanks in part to the ability of electric vehicle manufacturers to survive the constant turmoil in the global supply chain, they recorded record quarterly profits for the third consecutive year.
Revenues were strong after Tesla delivered about 73% more vehicles than in the year-ago quarter. Supporting that growth was increased sales of Chinese-made cars, which are currently produced by Tesla’s largest car factory.
The company said Wednesday that it had benefited from lowering production costs. These profits were partially offset by factors such as a drop in the average price of vehicles sold by the company during that period.
Automakers reported third-quarter profits of $ 1.6 billion from $ 331 million in the year-ago quarter with record revenues of $ 13.8 billion. The result exceeded Wall Street’s expectations of a profit of approximately $ 1.3 billion and a revenue of $ 13.6 billion.
Tesla also needed to address other issues affecting its business this quarter. “Semiconductor shortages, port congestion, rolling blackouts and many other challenges are affecting our ability to keep factories running at full speed,” the company said. With that revenue release.
Tesla is more vertically integrated than many automakers and helps you navigate your company Shortage of chips According to analysts, it went smoother than its competitors. “Tesla has a great ability to pivot with chip sourcing, given the software leads.”
Analyst Dan Levy said in a recent investor note.
Analysts expect Tesla’s vehicle deliveries to grow to around 266,000 this quarter, according to FactSet, and will deliver about 900,000 vehicles to customers in 2021. The company says it aims to increase deliveries by more than 50%. Last year, the total number of vehicles exceeded nearly 500,000.
Tesla’s share price has skyrocketed in recent weeks, closing Wednesday at around $ 866, approaching January’s record closing price of $ 883.09. After the company announced the results, the stock price fell by less than 1% in after-hours trading.
However, finding a workaround for missing parts is not cheap.
“There is a lot of cost pressure on the supply chain,” said CEO.
He said at the company’s annual shareholders meeting earlier this month. “The huge amount of money we spend on flying parts around the world is not that big, but it’s preferably temporary.”
Musk also suggested at the meeting that a shortage of parts contributed to the delay in Tesla products. The company has postponed the deployment of Cybertruck pickups for about a year. Currently, production is likely to begin in late 2022. Originally scheduled for 2019, the company’s long-delay semi-trailer truck production has been postponed until 2023.
“We were basically limited by a shortage of multiple supply chains, like so many supply chains of so many types, not just chips,” Musk said.
Mr. Musk, Tesla’s flagship earnings announcement, did not appear to be attending the company’s third-quarter analyst briefing on Wednesday. The CEO, who also runs Space Exploration Technologies Corp. and is dissatisfied with the workload, said in July that he would not participate in the company’s earnings announcement by default.
Tesla said it is building its first prototype in Texas and plans to get a final permit approval for its German plant by the end of the year. The company said it aims to start regular production of Model Y cars at both sites by the end of the year.
Meanwhile, the company is facing more and more scrutiny Advanced driver assistance toolsUseful for tasks such as moving in the lane of a highway.
Last week, the Federal Automobile Safety Regulatory Authority expressed concern that the lack of transparency associated with such features (not making vehicles autonomous) could compromise safety surveillance. Did. The agency began investigating Tesla’s autopilot driving assistance system in August after a series of collisions involving Tesla and one or more parked emergency vehicles.
Tesla has not responded to requests for comment on the probe. As part of the investigation, NHTSA has asked Tesla to provide a large amount of information on advanced driver assistance technologies. The first batch of data is from NHTSA on Friday.
Correction and amplification
Tesla Inc. recorded record quarterly profits on Wednesday for the third consecutive year. Earlier versions of this article stated that it was the third consecutive quarterly profit. (Corrected on October 20)
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Tesla posts record quarterly revenue for supply chain resilience
Source link Tesla posts record quarterly revenue for supply chain resilience