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Tesla (TSLA) posted third-quarter income that topped expectations, with document deliveries serving to gas the electric-vehicle maker’s outcomes whilst provide chain challenges weighed broadly on the auto trade. Nevertheless, quarterly income got here in in need of consensus expectations, and shares fell barely in after-hours buying and selling.
Right here have been the primary metrics from Tesla’s report, in comparison with consensus estimates compiled by Bloomberg:
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Income: $13.76 billion vs. $13.91 billion anticipated, $8.77 billion Y/Y
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Adjusted earnings per share: $1.86 vs. $1.67 anticipated, 76 cents Y/Y
Earlier this month, Tesla introduced it handed over 241,300 of its electrical automobiles globally within the three months ending in September, representing a brand new all-time excessive for quarterly deliveries. This introduced year-to-date deliveries to about 627,500 — already effectively above the practically 500,000 deliveries Tesla posted in all of 2020. Deliveries function one of the vital carefully watched metrics at Tesla as a sign of electric-vehicle demand. On Wednesday, Tesla additionally reiterated its earlier steering to attain 50% common annual development in car deliveries over a multi-year horizon.
Third-quarter deliveries have been pushed once more by the extra inexpensive Mannequin 3 and Mannequin Y automobiles, that are mixed beneath Tesla’s reporting construction. Collectively, these fashions comprised over 232,000 of the general quarterly deliveries. Tesla mentioned Wednesday its common promoting worth (ASP) of automobiles decreased by 6% over final yr “as a consequence of continued combine shift in direction of lower-priced automobiles.”
Nonetheless, Tesla widened its working margin to 14.6% within the third quarter, versus 11.0% within the second quarter and 9.2% in the identical interval final yr.
“Our working margin reached an all-time excessive as we proceed to cut back price at a better price than declines in ASP,” Tesla mentioned in its shareholder letter.
Automotive gross margins, derived from Tesla’s core enterprise of promoting electrical automobiles, additionally expanded to succeed in 28.8% within the third quarter from 25.8% within the second. This metric strips out optimistic impacts from gross sales of regulatory credit by the electrical vehicle-maker to different automakers. These high-margin regulatory credit score gross sales accounted for $279 million within the third quarter, down from $397 million in the identical interval final yr.
In the meantime, Tesla additionally booked a bitcoin-related impairment of $51 million within the third quarter from its balance-sheet holdings of the cryptocurrency, which served as a destructive influence to income. This marked a second straight quarterly bitcoin-related impairment cost for Tesla. Within the first quarter of 2021, Tesla’s bitcoin holdings had generated a $101 million optimistic influence, internet of impairments.
Tesla’s third-quarter deliveries, which topped Wall Avenue’s quarterly estimates and grew greater than 70% over final yr, stood in stark distinction to the disappointing gross sales outcomes from plenty of legacy automakers. Basic Motors (GM) mentioned it delivered 446,997 automobiles within the third quarter, representing a plunge of 32.8% over final yr as chip shortages resulted in weeks-long manufacturing disruptions. And American Honda gross sales tumbled 10.9% over final yr, coming in worse than the 6.7% drop Wall Avenue analysts have been anticipating, based mostly on Bloomberg knowledge.
Tesla, nonetheless, has additionally contended with provide chain disruptions as a consequence of international semiconductor shortages, and car deliveries in the course of the third-quarter outpaced manufacturing.
“A wide range of challenges, together with semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our skill to maintain factories operating at full pace,” Tesla mentioned in its shareholder letter on Wednesday. “We consider our provide chain, engineering and manufacturing groups have been coping with these international challenges with ingenuity, agility and adaptability that’s unparalleled within the automotive trade.”
And in the course of the firm’s annual assembly earlier this month, Tesla CEO Elon Musk additionally highlighted that supply-side challenges have been coming from a number of fronts.
“This yr has been only a fixed battle with elements provide … We’re simply mainly restricted by a number of provide chain shortages, like so many provide chains of so many sorts, not simply chips,” Musk mentioned. “We must be via our extreme provide chain shortages in ’23. I am optimistic that that would be the case.”
Musk additionally added on the time that he anticipated Tesla’s new Cybertruck would begin manufacturing by the top of subsequent yr earlier than reaching quantity manufacturing in 2023, and that he was “hopeful” the Semi and Roadster would begin manufacturing that yr as effectively.
In Tesla’s shareholder letter Wednesday, the corporate added it’s “making progress on the industrialization of the Cybertruck, which is presently deliberate for our Austin manufacturing subsequent to Mannequin Y.” Tesla reiterated its earlier goal to start Mannequin Y manufacturing builds in each its Berlin and Austin Gigafactories earlier than the top of the yr. Each amenities are presently nonetheless finishing building.
“Going ahead, slicing the pink ribbon on Austin and Berlin over the approaching months can be key as extra provide comes on-line for Tesla with demand presently outstripping provide for Tesla by roughly 30k automobiles and thus talking to attend occasions for vehicles trending (Mannequin Y) into subsequent spring throughout the U.S. and Europe,” Wedbush’s analyst Dan Ives wrote in a observe earlier this week.
“We consider within the month of September alone Tesla delivered roughly 150k automobiles and is a transparent indicator of this inexperienced tidal wave taking maintain for Musk & Co. throughout the board,” he added. “We consider China demand rebounded within the quarter and is evident indicator of the step up in EV demand happening globally with China main the best way.”
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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