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.