Tesla’s robust deliveries of Model Ys and Electric 3s helped the Elon Musk-led automaker post a record third-quarter net profit of $ 1.6 billion, despite component supply issues that slowed the market down. entire global auto industry, as it prepares to open massive new factories in Germany and Texas.
The company said earnings per share for the three months ended Sept. 30 more than quadrupled from a year ago to $ 1.44 on a GAAP basis or $ 2.09, excluding certain items. Analysts’ consensus expectations were $ 1.67. Quarterly revenue was $ 13.8 billion, up 57% from a year ago and in line with analyst expectations, reaching $ 13.9 billion. Regulatory sales credits to other automakers, a long-standing source of free money, fell 30% to $ 279 million.
“We were also able to achieve an annualized production rate of over one million cars by the end of the quarter. This increase in production rate is mainly due to the continued ramp-up of the Model Y at our Shanghai plant, ”Tesla Chief Financial Officer Zack Kirkhorn said on a earnings conference call. However, “due to parts shortages and logistical variability, we have not been able to operate our factories at full capacity.”
The company is in a transition phase this year as it prepares to significantly increase global production. Tesla is awaiting approval in Germany to start building vehicles at its new Giga Berlin plant and will also begin production soon at its Texas Gigafactory near Austin. The addition of the two facilities is expected to increase its global production footprint by more than 50% in 2022.
“We believe the current supply chain problems have caused Tesla’s annual figures to drop about 40,000 cars,” Dan Ives, analyst at Wedbush Securities, said in a research note. “Despite this momentum Musk & Co. is expected to approach the 900,000 mark for 2021 with a bogey of 1.3 million to 1.4 million units for 2022.”
Tesla previously said it delivered 241,300 vehicles globally in the quarter, the highest ever, and built 237,823 cars at its plants in California and China. So far this year, the company, which is moving its headquarters to Austin, Texas, has delivered 627,427 vehicles to global customers.
The company’s Fremont, California plant, which has built more than 430,000 electric vehicles in the past four quarters, can currently produce up to 600,000 units. Meanwhile, its new plant in Shanghai, China, a major source of vehicle exports, accounted for much of the volume growth in the quarter. Tesla estimates that it can produce more than 450,000 Model 3’s and Y’s per year.
“China is the star of the show after the headwinds at the start of the year,” said Ives, who has an outperformance rating and a target price of $ 1,000 on Tesla shares.
Yet during the quarter, Tesla said it “sees a continuation of the global supply chain, transportation and other manufacturing challenges. We continue to operate our production lines as close to full capacity. conditions permit. “
The company expects final approval to begin German production of the Model Y before the end of the year, although high-volume production will take months to reach, Kirkhorn said. The Austin plant will also initially build Y-models and eventually the Cybertruck polarizing electric pickup.
A call for results without musk
Notably, Musk did not participate in the earnings call with analysts (as he said it likely would earlier this year). Earlier in the week, he blasted on Twitter Duke University engineering and computer science professor Missy Cummings, who was chosen to serve as a senior advisor to the National Highway Traffic Safety Administration, the federal agency. which regulates automobile rules. Cummings pointed to the shortcomings of Tesla’s autopilot system and took issues with its so-called full self-drive feature.
“Objectively, his record is extremely biased against Tesla”, Musk tweeted to its 61 million followers. Cummings replied that she was happy to sit and be with him at all times.
During the call for results, however, Tesla executives said they supported NHTSA’s further review of its partially automated driving system, while avoiding any comment on Musk’s tweets.
“We expect and embrace the scrutiny of these products and know that the truth about their performance and the innovations of our products will ultimately be all that matters,” said Lars Moravy, Tesla vice president of engineering.
Kirkhorn, in a very different response from Musk, said the NHTSA review “is a good thing” for Tesla.
Stock was little changed on Wednesday on the Nasdaq, up 0.2% to close at $ 865.80. Forbes estimates that Musk’s net worth, as Tesla’s largest shareholder, is $ 219.9 billion.