Tesla Notches Record 1.6 Billion Quarterly Net As It Readies Global Production Push

With strong shipments of the Tesla Y and 3 electric models, automakers around Elon Musk hit a record $1.6 billion in the third quarter, although shipping issues slowed the global auto industry as a whole. Carrying Net Income. Germany and Texas.

According to the company, earnings per share for the three months ended September 30 under GAAP rose to $1.44, more than quadrupling on an annual basis, or $2.09 excluding some positions. Consensus analysts were expecting $1.67. Quarterly revenue was $13.8 billion, up 57 percent over the previous year, according to analyst expectations of $13.9 billion. Sales credits to other automakers, a long-standing source of free funding, fell 30 percent to $279 million.

“We also managed to achieve an annual production capacity of over 1 million units by the end of the quarter. This increase in production rates was due to further improvements in the Model Y, particularly at our Shanghai facility. “That’s because,” Tesla CFO Zach Kirchorn said in a statement. Nevertheless: “We were unable to start the plant due to spare parts shortages and logistical fluctuations.”

The company is in transition this year as it prepares for a drastic increase in world production. Tesla is awaiting approval to start manufacturing vehicles at its new Gigafactory facility in Germany and will soon begin production in Gigafactory, Texas, near Austin. The addition of the two factories is expected to increase the global production footprint by more than 50% by 2022.

 

“We believe Tesla’s annual revenue has declined by around 40,000 due to recent supply chain issues,” Dan Ives, an equity analyst at Wedbush Securities, said in a research note. “This dynamic Musk & Co. will reach nearly 900,000 units by 2021 and 1.3 million to 1.4 million units by 2022.”

Earlier, Tesla said it delivered 241,300 of the world’s largest vehicles this quarter and produced 237,823 vehicles at its plants in California and China. The company, which has moved its headquarters to Austin, Texas, has delivered 627,427 vehicles to customers worldwide so far this year.

The company’s Fremont, California facility, which has produced more than 430,000 electric vehicles in the last four quarters, is now able to generate an increase in sales of up to 600,000 quarterly. Tesla estimates that more than 450,000 3 and Y models could be produced each year.

“China was the star of the show after the headwind earlier this year,” said Ives, who has a higher valuation than Tesla and a $1,000 price target.

However, during the quarter, Tesla said, “We have seen global supply chain, transportation, and other manufacturing challenges persist. We will keep our production line close to full capacity when conditions permit. ”

According to Kirkhorn, the company expects final approval to start Model Y production in Germany by the end of the year, but it will take months before it’s ready for series production. The Austin factory will also produce the first Model Y and finally the Cybertruck polarized electric pickup.

Muscle score results

Specifically, Musk did not participate in soliciting earnings with analysts (which he said could happen earlier this year). Earlier this week he accused Missy Cummings, a professor of engineering and computer science at Miss Duke University, on Twitter. Missy Cummings is a senior adviser to the National Highway Traffic Safety Administration, the federal agency that regulates vehicle regulations. Cummings pointed out the shortcomings of Tesla’s autonomous driving system and had problems with what is known as fully autonomous driving capability.

“Objectively, their performance is heavily biased against Tesla,” Musk tweeted to his 61 million followers. Cummings replied that he would always be happy to sit with her.

However, when announcing their financial results, Tesla executives said they supported increased NHTSA oversight of the partially automated driving system and avoided commenting on Musk’s tweets.

Lars Morabi, Tesla’s VP of Engineering, said:

Kirkhorn said the NHTSA review was “great” for Tesla, with very musky reactions.

The stock was almost unchanged on Wednesday, up 0.2% to close at $865.80. Forbes, the largest shareholder in Tesla, Musk’s net worth is estimated at $219.9 billion.

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