Tesla has published its financial results for the third quarter of the year. And it has achieved the best quarter in its history. The brand announced an annual revenue increase of 57% year-on-year in the third quarter, with an operating profit of $ 2 billion amid supply problems, especially microchips, and the pandemic. Tesla attributed its profit to increased sales of its cars and reduced costs.
In addition, it achieved an operating margin of 14.6%. “The demand for electric vehicles continues to undergo structural change. We believe that the more vehicles we have on the road, the more Tesla owners will be able to spread the benefits of electric vehicles,” they say at Tesla.
The Fremont, California, factory was a key location, producing more than 430,000 vehicles in the last year. In the third quarter of 2021, a total of 241,300 deliveries of cars (not manufactured) were made, compared to only 139,593 in the same period of 2020.
Tesla deliveries grew approximately 73% over the same period last year. While it’s true, 2020 was a low-production year for everyone, including Tesla. But this growth is not only due to the reactivation of the economy and trade, it is also due to the increase in sales of models made in China, where the largest Tesla car factory is located.
In terms of production volume, Tesla manufactured 8,941 combined Model S and Model X units and 228,882 combined Model 3 and Model Y units this third quarter . In total, the US firm produced 237,823 cars this quarter.
As of October, Tesla manufactured 624,582 cars. Everything indicates that Tesla will end the year with more than 800,000 cars sold . It may not reach a million units in 2021, but it is on the right track.
Tesla already makes profits just selling cars
On the other hand, Tesla assures that it benefited from the cut of some expenses. The increased efficiency, combined with higher vehicle production, more than offset the increase in supply costs and other factors, such as the reduction in the average price of the vehicles that the company sold in that period.
All this translates into a profit of 1.6 billion dollars for Tesla in the third quarter , compared to 331 million the previous year, and with a record revenue of 13.8 billion dollars.
One of the strengths that has allowed Tesla to weather the lack of some supplies is its vertical integration, far superior to that of many automakers.
So doing it all at home, say, would have helped it navigate the chip shortage more easily than some of its rivals. Even so, the brand was not immune to problems in its supply chain and led to an increase in its production costs.
Tesla has not yet published the complete results for this third quarter, but everything indicates that, as in the previous quarter, it already generates profits only by selling cars and derivative products, such as batteries, without having to resort to the sale of carbon credits nor play with bitcoins.
In July 2021, Tesla made a profit of $ 1.1 billion in the second quarter of 2021, of which only $ 354 million was attributable to sales of carbon credits . The remainder came from auto sales, as well as a boost in energy storage systems sales.
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