Tesla Stock & Financial News

Tesla’s financial results for the most recent quarter surpassed what analysts had predicted, demonstrating strong performance in both revenue and earnings per share, with a total revenue of $8.77 billion for the third quarter.

Following reports earlier in the month that Tesla had already exceeded Wall Street’s delivery forecasts, attention turned to the earnings call to understand how effectively the electric vehicle and battery manufacturer had optimized its production processes, and consequently, its profitability.

The answer is now available, as Tesla announced a net income of $331 million* on revenues of $8.77 billion for the third quarter. This represents a 39% increase compared to the same quarter last year. Financial forecasts from CNBC indicated an expectation of $8.36 billion in revenue for the quarter.

Revenue experienced a year-over-year growth of 30%, which the company attributes to a significant increase in vehicle deliveries. Operating income also rose to $809 million, indicating improved operating margins of 9.2%.

While the automotive sector remains the primary driver of success, Tesla’s energy generation and storage divisions both exhibited considerable progress during the third quarter.

Energy storage reached a record 759 Megawatt hours for the quarter, with the company noting that production of its large-scale Megapack batteries is expanding, and demand for the Powerwall remains robust.

The company stated, “We continue to anticipate that our energy business will eventually be comparable in size to our vehicle business.”

Tesla also reports improvements in its solar business. “The introduction of our strategy for affordable solar solutions ($1.49/watt in the U.S. after tax credit) is beginning to yield positive results. Total solar installations more than doubled in Q3, reaching 57 MW compared to the previous quarter, while Solar Roof installations nearly tripled sequentially.”

The company’s operating expenses also increased. The new facilities in Austin and Brandenburg, Germany, resulted in higher costs, and Tesla invested $1.25 billion in operations, a 33% increase from the prior quarter.

Earlier this month, the company previewed positive delivery figures, announcing that it had already delivered 139,300 vehicles in the third quarter, slightly above Wall Street’s projections, and a substantial improvement over both the previous quarter and the same period in the prior year.

This delivery success represents a 43% increase compared to the same quarter last year, when 97,000 electric vehicles were delivered. Delivery numbers also increased by 53% compared to the previous quarter, a period when the global COVID-19 pandemic impacted Tesla’s sales and production at its primary U.S. manufacturing plant.

During the shareholder presentation, Tesla also revealed a comprehensive new strategy for its battery production plans. Tesla’s chief executive, Elon Musk, projected a potential increase of up to 40% in electric vehicle deliveries compared to 2019 and outlined a plan for enhancing battery manufacturing efficiency.

Tesla’s strong earnings report arrives as competition intensifies from established automotive manufacturers. GMC recently introduced its Hummer EV and, in September, Ford announced that it would be reducing the price of its Mustang Mach E to “remain fully competitive.”

Furthermore, emerging companies like Lucid Motors are demonstrating their potential to challenge Tesla’s market leadership. Lucid’s recent pricing for its Air sedan prompted a response from Tesla’s chief executive and head of public relations, Elon Musk, in the form of a price adjustment on the company’s own vehicle models.

This is an ongoing story and will be updated as more information becomes available.