Tesla’s The latest quarterly numbers beat analyst expectations on both revenue and earnings per share, bringing in $ 8.77 billion in revenue in the third quarter.
With reports that Tesla had already defied expectations for Wall Street delivery earlier this month, the question for today’s earnings call was how capable the electric car and battery company was from its manufacturing processes.
We now have the answer, as Tesla reported a $ 809 million profit in the third quarter on revenue of $ 8.77 billion. This is 39% higher than the year-ago period. According to estimates published by CNBC, Wall Street expected $ 8.36 billion in revenue for the quarter.
Revenue increased 30% year-over-year, with the company accounting for substantial growth in vehicle delivery, and operating income also rising to $ 0.99 million, improving operating margin by 9.2%.
And while the automotive business is clearly still the star of the show, both Tesla’s solar and storage businesses showed significant improvement in the third quarter.
Energy storage reached a record level of 759 MW this quarter, and the company said demand for PowerPlay remained strong, while mass production of megapacks for batteries was increasing.
“We believe the energy business will eventually be as large as our vehicle business,” the company said.
And according to Tesla, the solar business is also improving. “The recently introduced strategy of low-cost solar (at $ 1.49 / watt) in the US after tax-credits is beginning to take effect. Total solar deployments of up to 57 MW, solar roof deployments occur sequentially, more than double in Q3 compared to the prior quarter. “
Operating expenses also increased for the company. New factories in Austin and Brandenburg, Germany mean additional expenses, and Tesla invested $ 1.25 billion in operations, up 33% from the previous quarter.
Earlier this month, the company pulled its hand to the good news surrounding the delivery, saying it delivered 139,300 vehicles in the third quarter, slightly above Wall Street’s expectations, and a significant improvement from the previous quarter. Simultaneously the year before in the same period.
The delivery beat improved 43% from the same quarter last year, when the company reported delivery of 97,000 electric vehicles. And the number of deliveries was 53% on the quarter, as the globally spreading COVID-19 epidemic took its toll on sales and production operations for Tesla at its main US factory.
This quarter, Tesla revealed a comprehensive new vision for its battery manufacturing plans. During the shareholder presentation, Tesla Chief Executive Officer Elon Musk said he expected to deliver 40% more electric vehicles than in 2019 and laid out a road map for improved battery manufacturing efficiency.
Tesla’s earnings plummeted amid increasing competition among some of the world’s largest automakers. Yesterday GMC unveiled its Hummer EV And, in September, Ford announced it would Price reduction on its Mustang Mach e “To remain fully competitive.”
Meanwhile startups like Lucid Motors This is proving that they can be serious contenders for Tesla’s market dominance. Lucid’s recent price for its air sedan was enough to force Tesla’s chief executive and public relations chief Elon Musk to make a (creatively selected) price cut on the company’s own models.
This story is developing and will be updated.