Tesla Impresses With its Third Quarter Financial Results

Electric vehicle maker Tesla posted record revenue and profits in the third quarter this week.

The company reported after the bell on Wednesday and beat on both the top and bottom lines.

Gross margins had improved by 30.5% on its automotive business and 26.6% overall. Both figures are records for at least the last five quarters.

Despite the great results, shares of Tesla still dropped afterwards about 1.5%.

For the third quarter, Tesla reported earnings per share of $1.86 adjusted compared to $1.59 expected per Refinitiv.

Revenue at $13.76 billion was better than the $13.63 billion that was expected per Refinitiv.

Tesla reported $1.62 billion in (GAAP) net income for the quarter, the second time it has surpassed $1 billion. In the year-ago quarter, net income was $331 million.

In a shareholder deck the company released before a call to discuss Q3 results, the company said, “A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed.”

The company reiterated prior guidance that it expects to “achieve 50% average annual growth in vehicle deliveries” over a multi-year horizon.

Tesla also recorded a $51 million impairment during the quarter related to its investment in bitcoin, which it reported under “restructuring and other” expenses.

The company reported deliveries of 241,300 electric vehicles and production of 237,823 vehicles during the period ending September 30, 2021.

In the previous quarter, CEO Elon Musk said he would no longer lead earnings calls by default.

Musk chose not to address shareholders and analysts on Wednesday.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.