As car sales soar, Tesla’s quarterly earnings exceed expectations

The California-based company said that Elon Musk’s sales of electric vehicles and clean energy companies increased 57% to $13.8 billion, while adjusted earnings per share were $1.86.

Tesla’s reported revenue was lower than Wall Street’s expectations, but despite semiconductor shortages and supply chain challenges hindering rival automakers, it still managed to exceed third-quarter earnings expectations.

Elon Musk’s sales of electric vehicles and clean energy companies increased 57% to $13.8 billion, which was lower than the expected $13.9 billion. The Palo Alto, California-based automaker said on Wednesday that it had adjusted earnings per share of $1.86. This exceeded the average analyst estimate of $1.67 per share. This result marks the ninth consecutive quarter of profitability for the 18-year-old electric car manufacturer.

The company’s automotive gross profit margin, a key indicator of profitability, expanded to 28.8% in the most recent quarter, higher than 27.7% in the same period last year.

Tesla shares fell 1.5% to $853 in after-hours trading. At the end of the regular trading in New York, they were almost unchanged at $865.80.

Gene Munster of Loup Ventures said of strong gross margins: “The stock fluctuates in a jagged manner because it is expected,” excluding regulatory credit, gross margins reached 28.8%. “But they have made a lot of progress in terms of profitability.”

Tesla is expanding on three continents, and new factories in Austin, Texas and Berlin are about to be completed. At the shareholders meeting earlier this month, CEO and largest shareholder Musk said that his company will move the company’s headquarters to Austin, but no date was given.

Tesla delivered 241,300 vehicles worldwide in the third quarter, setting a record for the company. Tesla currently produces Model S, X, 3 and Y at its Fremont, California plant, and Model 3 and Y at its Shanghai plant. More than 96% of sales this quarter came from Model 3 and Y.

Regulatory credit income was US$279 million, down from US$354 million three months ago. The company also reported an impairment of $51 million in Bitcoin.