Currently reading: Tesla achieves best quarter on record with Q3 performance
EV firm announces revenue growth of 57% year on year in quarter three, with an operating income of $2 billion amid supply issues and pandemic
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2 mins read
21 October 2021

Electric vehicle manufacturer Tesla has achieved its best quarterly performance to date, with its net income, operating profit and gross profit all reaching record levels of growth. 

The firm announced revenue growth of 57% year on year in quarter three, with an operating income of $2 billion (£1.45bn). Tesla attributed its profit to vehicle volume growth and cost reduction. 

Tesla also achieved an operating margin of 14.6%. “EV demand continues to go through a structural shift. We believe the more vehicles we have on the road, the more Tesla owners are able to spread the word about the benefits of EVs,” Tesla said.

The company’s Fremont factory was a key site, producing more than 430,000 vehicles in the past year. A total of 241,391 vehicle deliveries took place in the third quarter of 2021, compared with just 139,593 in the same period in 2020.

“While Fremont factory produced more cars in the last 12 months than in any other year, we believe there is room for continued improvement," Tesla said. "Additionally, we continue to ramp Gigafactory Shanghai and build new capacity in Texas and Berlin.”

Despite the gains, the manufacturer claims positive impacts were partially offset due to supply issues, a drop in average selling price (ASP), raised operating expenses, lower regulatory credit revenue and Bitcoin-related issues of $51 million (£37m). 

“A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed,” Tesla said. “We believe our supply chain, engineering and production teams have been dealing with these global challenges with ingenuity, agility and flexibility that is unparalleled in the automotive industry.” 

Tesla also expects average annual growth of 50% in future vehicle deliveries, dependent on equipment capacity, operational efficiency and supply chain sustainability. The Model Y is scheduled to go into production in Berlin in Austin before the end of the year, and the firm hopes its anticipated Cybertruck will arrive by the end of 2022. 

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Electrohead 22 October 2021

"Yes 3's are everywhere."

Just wait until the Model Y arrives next year they'll be everywhere too. I think a lot of people have been deferring a Tesla purchase until they can get the SUV.

Gerard McGovern OBE 21 October 2021
Good to see Tesla experiencing growth. Here at JLR we prefer premium and timeless design over growth. I shall breeze over their website and check out their offerings whilst pondering which jacket to wear to dinner tonight.
lambo58 22 October 2021

Good to see Tesla experiencing growth. Here at JLR we prefer premium and timeless design over growth. I shall breeze over their website and check out their offerings whilst pondering which jacket to wear to dinner tonight.

What utter crap, If this Indian firm sold as many cars as Tesla they would be doing handcarts up and down Kensington high street. Over complicated, over priced junk with reliability that a land cruiser would walk over 5 to 1. Better get your overalls in addition to your jacket to repair the thing while you are at it. Premium my backside. Thats why it was sold to Tata. Laughable

 

scotty5 21 October 2021

However they calculate their profit and losses around the globe, one thing is for certain, I'm blown away with the number of Model 3's I'm seeing on UK roads. It's not in anyway a cheap car and I believe the cheapest is well over the £35k list required to trigger the government grant.

Downside? Who cares as long as Tesla are happy with sales, but of the two people I know who drove Model S, the only model available at the time, both of them have changed to Tesla 3's. Don't know how much their 3's are but both the Model S was around the £75k mark at the time of purchase. I'm sure there will be many other Tesla owners who've traded down now the 3 is available. Model X and new / late reg Model S is a very rare sight up in my neck of the woods.

tlb 21 October 2021

Yes 3's are everywhere.  vs. the old S it's a no-brainer.  You're getting virtually no uplift for a massive premium in the model S.  Not seen in the new S though - they need to up the quality massively.

Biggest thing about a 3 though vs. any other car at the moment is you can actually get one.  Turnaround from order to collection is as low as 10 days if you go for a long-range.

Torque Stear 22 October 2021
scotty5 wrote:

However they calculate their profit and losses around the globe, one thing is for certain, I'm blown away with the number of Model 3's I'm seeing on UK roads. It's not in anyway a cheap car and I believe the cheapest is well over the £35k list required to trigger the government grant.

Downside? Who cares as long as Tesla are happy with sales, but of the two people I know who drove Model S, the only model available at the time, both of them have changed to Tesla 3's. Don't know how much their 3's are but both the Model S was around the £75k mark at the time of purchase. I'm sure there will be many other Tesla owners who've traded down now the 3 is available. Model X and new / late reg Model S is a very rare sight up in my neck of the woods.

They sell 3s and Ys at 15x the volume of Model S, they don't need to worry about canabalisation and they could drop the S without affecting the bottom line as shown by the last few quarters results which had neglible S&X production in them.

Their average selling price is very high by automotive average which is why they are knocking on the top 10 in terms of revenue while selling at a rate of just under 1 million.

The Model Y is on track to be the highest revenue car model in the world some time next year.