Tesla’s quarterly earnings beat estimates as car sales rise

Sales of Elon Musk’s clean energy and electric vehicle firm increased 57 percent to $ 13.8 billion, while earnings reached $ 1.86 a share on an adjusted basis, the California-based firm said.

Tesla Inc. reported revenue that fell short of Wall Street estimates, but managed to beat third-quarter earnings projections despite semiconductor shortages and supply chain challenges that have hampered competing automakers.

Sales of Elon Musk’s clean energy and electric vehicle company increased 57% to $ 13.8 billion, below estimates of $ 13.9 billion. Earnings came to $ 1.86 a share on an adjusted basis, the Palo Alto, California-based automaker said Wednesday. That beat the $ 1.67 per share average of analyst estimates. The results mark the ninth consecutive quarter of earnings for the 18-year-old electric carmaker.

The company’s automotive gross margin, a key indicator of profitability, expanded to 28.8% in the last quarter, up from 27.7% a year earlier.

Shares of Tesla fell as much as 1.5% to $ 853 in after-market trading. They were slightly changed to $ 865.80 at the close of regular business in New York.

“The stock is in a zigzag because this was expected,” Loup Ventures’ Gene Munster said of strong gross margins, which came in at 28.8% excluding regulatory credits. “But they are making a lot of progress when it comes to profitability.”

Tesla is expanding across three continents and is nearing completion of new factories in Austin, Texas, and Berlin. At his shareholders meeting earlier this month, CEO and principal shareholder Musk said his company will move its corporate headquarters to Austin, without giving a date.

Tesla delivered 241,300 cars worldwide in the third quarter, a record for the company. Tesla currently manufactures the Model S, X, 3 and Y at its Fremont, California factory and the Model 3 and Y at its Shanghai plant. More than 96% of sales in the quarter were Model 3 and Y.

Regulatory loan revenue reached $ 279 million, down from $ 354 million three months earlier. The company also reported a Bitcoin impairment of $ 51 million.



Reference-www.aljazeera.com

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