Business & Investment

Tesla achieves record profits despite lack of parts

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Detroit — Record electric vehicle sales pushed Tesla to the highest quarterly net profit in history last summer amid a shortage of computer chips and other materials.

The company said on October 20 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 more than five times that of the $ 300 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 said He relocates headquarters to Austin, Texas..

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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.

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.

According to the company, 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 Inc.’s share price fell 0.5% to $ 861.75 in after-hours trading on October 20th.

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Tesla achieves record profits despite lack of parts Tesla achieves record profits despite lack of parts

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