Tesla Reported Record Revenue and Profits in Q3

The giant electric car maker Tesla reported third-quarter earnings after the bell Wednesday, and it’s a beat on both the top and bottom lines.

The firm’s stock declined by 1.5% after hours.

Tesla reported earnings per share of $1.86, while $1.59 was expected by Refinitiv.

Meanwhile, it announced third-quarter revenue of $13.76 billion versus $13.63 billion anticipated by Refinitiv.

Furthermore, an electric car maker reported $1.62 billion in (GAAP) net income for the quarter. Remarkably, this is the second time it has exceeded $1 billion. In comparison, in the year-ago quarter, net income was $331 million.

The record results were supported by improved gross margins of 30.5% on its automotive business and 26.6% overall, both of which are records for at least the last five quarters.

Automotive revenue increased to $12.06 billion, and costs of automotive revenue amounted to $8.38 billion for the quarter.

Tesla also made $806 million in revenue from its energy business, which combines solar and energy storage products. The firm also generated $894 million in services and other revenue. These include vehicle maintenance and repairs, auto insurance, and sales of Tesla-branded merchandise, which Tesla has revealed in past financial filings.

For its energy and storage business, revenue costs increased to the highest number in the last five quarters to $803 million during Q3 of the year.

During 3Q, Tesla recorded a $51 million impairment related to its investment in bitcoin.

The company had previously disclosed deliveries of 241,300 electric vehicles and production of 237,823 vehicles during the third quarter of 2021.

Tesla’s sales increased during the quarter, unlike other automakers, and witnessed a new company record. The company posted strong sales despite chip shortages and supply chain challenges weighing on the industry.

Tesla Is Changing the Battery Chemistry It Uses in Electric Vehicles

In its third-quarter investor desk, the automaker announced that it is changing the battery chemistry it uses. This change will affect all its standard-range electric vehicles to a version with a lithium-iron-phosphate (LFP) cathode.

The move aims to raise profit margins on its fully electric cars while not necessarily raising vehicle prices. As we know, in the past, Tesla received criticism for sporadic vehicle price changes.

Tesla is already making cars with LFP chemistry at its factory in Shanghai. The firm sells those cars in China, the Asia-Pacific region, and Europe.