Electric vehicle company Tesla has reported its third-quarter earnings and it is nothing short of expectations. Elon Musk-owned Tesla reported earnings per share (adjusted) at $1.86, beating Refinitiv’s expectation of $1.59 percent. The company’s revenue of $13.76 billion also beat the expectation of $13.63 billion forecast by Refinitiv.
The electric vehicle company reported the sum of $1.62 billion (GAAP) in net income for the third quarter. Compared to the same period last year where the amount of net income was $331 million, this is an impressive record that shows growth. The record of $1.62 billion for net income for the third quarter is the second time that this figure is exceeding $1 billion.
It is relevant to know that the electric company’s record results were majorly boosted by improved gross margins of 30.5 percent on its automotive business and a 26.6 percent increased margin in its overall business. The company recorded an increase to $12.06 billion for automotive revenue in the third quarter while costs of automotive revenue for the quarter ran up to $8.38 billion.
Recall, that there has been a global shortage of chips that are required to build products like cars, mobiles, and even small household everyday items. The global chip shortage has affected the production of many companies, with many left with no option other than to delay or cut down on production. Tesla was also not left out from the effects of the raging chip shortage problem which has been forecasted to last for quite some time. “A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed”, A shareholder deck released by Tesla before it released its third-quarter results said. Irrespective of these challenges, the company’s third-quarter results were still impressive.
Tesla recorded $806 million in revenue from its energy business which is the umbrella that covers its energy storage and solar products. However, the cost of revenue for its energy and storage business rose to $803 million, its highest in the last five quarters. The company generated $894 million in services and other revenue – other revenue covers auto insurance, sales of Tesla merchandise, vehicle maintenance and repairs, etc.
Reported under the category “restructuring and other” expenses, Tesla also recorded a $51 million impairment related to its Bitcoin investment.
Tesla is one of the biggest electric vehicle brands in the world. It is also one of the biggest competitors in the market. Juxtaposed with figures from other automakers, Tesla has done better and the global chip shortage and other supply chain challenges didn’t seem to have too much effect on its production. Tesla said it made deliveries of 241,300 electric vehicles and production of 237,823 vehicles during the period ending September 30th, 2021.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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