The Strategist

Tesla ends third quarter with record profits of $1.6B


10/22/2021 - 08:34



U.S. electric car maker Tesla reported third-quarter earnings.



Tristan Nitot
Tristan Nitot
The company's revenues rose 57 percent to $13.8 billion in the period, while net income nearly quintupled to $1.6 billion, a record profit for Tesla. Successful sales of electric cars in China and lower production costs, among other things, helped Tesla to achieve good results for the quarter.

At the beginning of October, the company also published data on sales of electric cars: they grew by 72% compared to the same period in 2020, reaching 241 thousand units. Analysts believe that sales growth will continue in the fourth quarter - Tesla is expected to sell 266,000 electric cars, thus a total of 900,000 will be sold during the year. 

Tesla is less likely than most other automakers to suffer from microchip shortages: analysts attribute this to the fact that the company began buying alternative chips and changing their software so that they would be suitable for its equipment. However, chip shortages have also affected Tesla. "Due to shortage of components and difficulties with logistics we could not run our plants at full capacity," the company said.

In spite of good results, shares of Tesla went down by 1,5% after the report was published. Analysts attribute this to the fact that they have risen quite strongly in the last week on expectations of good reporting, in addition, investors are concerned about the ongoing investigation by the US National Highway Traffic Safety Administration into several accidents involving Tesla electric cars.

source: bloomberg.com




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