Tesla addresses global chip shortage with record revenue – .

Tesla addresses global chip shortage with record revenue – .

Tesla posted record third quarter revenue and profits as it weathered the global shortage of computer chips to supply its electric vehicles to a rapidly growing mainstream market.

The company posted net income of $ 1.6 billion for the quarter, its highest level on record, just three months after posting its first quarterly profit of more than $ 1 billion since its inception in 2003.

Net profit climbed 389% from a year earlier, while quarterly revenue rose 57% to $ 13.8 billion, slightly below estimates but still a record for the company.

“We achieved our best net profit, operating profit and gross profit,” Tesla said.

The electric car maker said its operating margins, at 14.6%, were up 5.3 percentage points from a year ago and exceeded its medium-term forecast by one digit “Low-adolescent”.

Tesla had already announced two weeks ago that it had delivered a record 241,300 vehicles during the quarter, a gain of 72% over the previous year. The jump was especially noticeable given the havoc chip shortages wreaked on the production schedules of the biggest automakers.

General Motors’ vehicle deliveries in the United States fell 32.8% in the most recent quarter from a year ago, a decline the automaker blamed on the supply of semiconductors.

Alyssa Altman, head of mobility at Publicis Sapient, a consultancy firm, said Tesla is proving it can be “more agile in dealing with chip shortages and overall supply chain issues” thanks to its culture software-oriented and its simpler product line.

Tesla’s production pace is expected to increase as its Shanghai plant increases the scale of its operations. Tesla chief executive Elon Musk has vowed that its Berlin plant will start producing cars as early as next month, while its Texas plant is also increasing capacity. The company recently announced that it will be moving its headquarters from Palo Alto, California, to Austin, Texas.

Zach Kirkhorn, chief financial officer, said there had recently been a “wake-up call” for electric vehicles. “To be frank, it caught us a bit off guard,” he said. “We are not able to increase production capacity faster.

Tesla warned he was facing “a variety of challenges,” including the continued shortage of chips, “congestion at ports and progressive blackouts.”

He added, “We believe our supply chain, engineering and production teams have met these global challenges with ingenuity, agility and flexibility unparalleled in the automotive industry.

Tesla stock was up 18.6% this year at market close on Wednesday, although it was down 0.4% in after-hours trading.

Tesla’s market value is over $ 850 billion, hundreds of billions of dollars more than that of Toyota, GM or Volkswagen – groups that regularly produce around 10 million vehicles a year each but struggle to keep up. to match Musk’s performance in terms of battery performance and brand appeal. .

The average selling price of a Tesla vehicle fell 6% in the quarter as the company seeks to popularize its electric vehicles in the United States and around the world.

The regulatory credit sale – in which Tesla sells zero-emission credits from various governments to other automakers – accounted for $ 279 million in revenue, up from $ 397 million a year ago.

Tesla, which bought $ 1.5 billion worth of bitcoin in February in hopes of accepting cryptocurrency as a payment method, recorded a $ 51 million depreciation in the quarter. The volatile currency hit an all-time high earlier on Wednesday, likely easing concerns about its place in Tesla’s cash reserve portfolio.

Kirkhorn said Tesla has the opportunity to increase its profit margins by leveraging its software advantages and rolling out its “fully autonomous driving” package – a controversially named driver assistance feature – to more customers. The plan costs $ 10,000 up front or $ 199 per month.

“The business until now was largely an automotive hardware company with a little bit of software on top of that,” Kirkhorn said. “As autonomous driving matures, as take rates increase, if we are to increase prices, there is a huge benefit. “


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