September 28, 2022

The Queens County Citizen

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3rd Quarter | Tesla offers record profits from strong sales

3rd Quarter |  Tesla offers record profits from strong sales

(New York) Electric-vehicle manufacturer Tesla has been able to record record third-quarter profit despite logistical issues disrupting its production lines, but warns that its ramp-up will depend on the availability of certain items.

Juliet Michael
France Media Agency

“A variety of challenges, from semiconductor shortages to congestion at ports to blackouts, have affected our ability to operate factories at maximum capacity,” the group agreed in a statement.

However, Tesla was able to deliver an unprecedented number of 241,300 vehicles worldwide during this period, up 20% and 76% year-over-year compared to the previous quarter.

The ramp-up of its plant in Shanghai has been a big contributor, with vehicles made in China being exported to the United States and Europe, CFO Jack Kirkhorn said in a conference call.

Elon Musk has previously said that he was able to make the most of the semiconductor shortage by using new chip designs and rewriting the software accordingly.

While other manufacturers found it difficult to cope with these challenges, General Motors saw sales of its vehicles in the United States fall, for example, by 33% in the third quarter due to a lack of semiconductors. Year, to reduce its production.

Tesla is on track to reach its 50% annual growth target, but will produce in the fourth quarter, but it will “depend very much on the availability of certain components,” Kirchhorn said.

Garrett Nelson of CFRA justified the stock’s reaction on Wednesday, falling 0.7% after the session, citing the fact that the company’s announcement that its growth would depend on external factors “may have worried investors”. Despite the statistics Wall Street exceeded expectations.

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But after an increase of more than 700% at the beginning of 2020, it has risen by 23% since the beginning of the year.

Losing Bitcoin

Between July and September, Tesla’s revenue reached $ 13.76 billion, up 57%.

The company’s net income rose to $ 1.6 billion from $ 331 million a year ago.

Tesla said the increase in operating profit was “mainly related to growth in vehicle size and cost reduction”.

The group was able to increase its gross margin from its automotive operations to 28.5% from 30.4% in the previous quarter.

The company, which recently announced the relocation of its headquarters from California to Texas, aims to start production at its new plants in Austin and Berlin by the end of the year, Kirkhorn said.

The goal, which was repeatedly emphasized Wednesday as finance director, is to increase production to meet strong demand for electric vehicles.

Tesla surprised by announcing the purchase of $ 1.5 billion worth of bitcoin earlier this year, however, the investment once again weighed on its results.

After earning $ 101 million in the first quarter thanks to virtual currency, the group had to register a charge of $ 23 million in the second quarter and then $ 51 million in the third quarter.

The group, which has taken most of its profits by selling carbon credits granted to other companies to other companies, has not emitted any emissions from its cars, and the source continues to dry up: revenues from these transactions reached $ 279 million in the third quarter, $ 354 million in the second quarter and $ 354 million in the second quarter. Compared to 518 million.

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As he pointed out in July, Tesla’s bizarre boss did not attend a conference call with analysts on Wednesday.

Elon Musk indicated at the time that he did not necessarily attend the conference, which traditionally follows the publication of results, “unless there is really something important I want to say”.