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Tesla TSLA earnings Q3 2021

Tesla reported third-quarter earnings after the bell Wednesday, and it is a beat on each the highest and backside traces.

The corporate’s inventory dropped lower than some extent after hours on the outcomes. Listed below are the outcomes.

  • Earnings per share (adjusted): $1.86 vs $1.59 anticipated per Refinitiv
  • Income: $13.76 billion vs $13.63 billion anticipated per Refinitiv

The corporate reported $1.62 billion in (GAAP) internet earnings for the quarter, the second time it has surpassed $1 billion. Within the year-ago quarter, internet earnings was $331 million.

The file outcomes had been pushed by improved gross margins of 30.5% on its automotive enterprise and 26.6% general, each of that are information for not less than the final 5 quarters.

Automotive income rose to $12.06 billion and prices of automotive income amounted to $8.38 billion for the quarter.

Tesla additionally generated $806 million in income from its power enterprise, which mixes photo voltaic and power storage merchandise, and $894 million in providers and different income, which incorporates car upkeep and repairs, auto insurance coverage and gross sales of Tesla-branded merchandise amongst different issues, Tesla has disclosed in previous monetary filings.

For its power and storage enterprise, prices of income rose to the best quantity within the final 5 quarters to $803 million throughout the third quarter.

In a shareholder deck that Tesla launched earlier than a name to debate Q3 outcomes, the corporate stated, “Quite a lot of challenges, together with semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our capability to maintain factories operating at full velocity.”

Even with these points, the corporate reiterated prior steerage that it expects to “obtain 50% common annual progress in car deliveries” over a multi-year horizon.

The corporate recorded a $51 million impairment associated to its funding in bitcoin, which it reported below “restructuring and different” bills.

Tesla beforehand reported deliveries of 241,300 electrical autos and manufacturing of 237,823 autos throughout the interval ending September 30, 2021.

In contrast to different automakers, Tesla’s gross sales rose throughout the quarter, setting a brand new firm file, regardless of chip shortages and provide chain challenges weighing on the trade. (Deliveries are the closest approximation of gross sales that Tesla studies.)

Many different automakers have reported file earnings throughout the semiconductor chip scarcity because of resilient client demand, however they haven’t been capable of produce higher gross sales as a result of provider constraints.

In a Q3 2021 shareholder deck, Tesla remained non-committal on the beginning date for manufacturing of the hotly anticipated Cybertruck. The corporate is saying solely that manufacturing of the non-traditional truck will start sooner or later after Mannequin Y manufacturing commences in Austin, the place Tesla is constructing a brand new car meeting plant.

Final quarter, CEO Elon Musk stated he would no longer lead earnings calls by default. He could select to not tackle shareholders and analysts on Wednesday, which might certainly disappoint his followers.

Buyers submitted questions to Say Applied sciences, a website Tesla makes use of to poll shareholders forward of earnings calls, in search of updates on the now-delayed Cybertruck, Tesla’s 4680 battery cells, and whether or not a $25,000 electrical automotive, which Musk teased final yr, continues to be underway. The corporate’s technique for weathering provide chain points can even be in focus.

Tesla stated on Wednesday that for its customary vary autos, it is going to be “shifting to Lithium Iron Phosphate (LFP) battery chemistry globally.” Beforehand, Tesla used lithium-ion battery cells with a nickel cathode in its US-made customary vary autos. As a result of iron is extra ample than uncooked supplies utilized in different lithium-ion battery cells, like nickel and cobalt, LFP battery cells are typically extra reasonably priced to supply at present.

It is a creating story. Examine again for updates.

Correction: Attributable to an modifying error, a earlier model of this text misstated the elements of Tesla’s providers income. FSD subscriptions are counted as a part of automotive income.

— CNBC’s Michael Wayland contributed reporting.

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