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Tesla reported record quarterly results

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According to Tesla announcement on the 20th (local time), the company has posted profits for the third consecutive quarter.

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Tesla has avoided the semiconductor debt crisis by developing its own semiconductors and software, while automakers around the world are experiencing severe production disruptions due to a semiconductor shortage.

Tesla announced on the 9th that it delivered 241,300 vehicles for the third quarter of this year, an increase of more than 70 percent from a year earlier. The increase reflected in the profits.

Tesla’s quarterly net profit jumped from $331 million a year ago to $1.6 billion this year, according to foreign media outlets such as the Wall Street Journal (WSJ) and CNBC. Tesla’s sales reached a record $13.8 billion.

Wall Street’s predictions of $1.3 billion in sales and $1.3 billion in revenue were far exceeded.

Tesla reported record profits and revenues despite supply chain disruptions and semiconductor shortages thanks to strong sales in China. By number of units produced, Tesla’s Shanghai plant is its largest automotive production base.

Other automakers to follow.

Although other automakers are also experiencing production setbacks due to a lack of semiconductors, they should perform above expectations due to strong demand. Automobile manufacturers are increasing prices to offset rising costs, and their profits are surging. However, the inability to deliver on time has prevented companies from achieving higher profits.

Vertical integration.

As Tesla is more vertically integrated than most other companies, it is less affected by the semiconductor and parts shortage.

According to analysts, Tesla will continue to thrive in the fourth quarter, with an expected delivery volume of 266,000 more vehicles. Tesla had previously promised to increase the number of vehicles delivered by 50% this year over last year.

Tesla’s stock price has already risen sharply this week as a result of its earnings forecast.

The stock closed at $865.80, up $1.53 (0.18%), close to its all-time high of $883.09 set in January.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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