Palo Alto’s Tesla Inc posts record earnings, cautions factory opening won’t be simple

Tesla Inc had handsomely beaten Wall Street projections for its third-quarter revenues on Wednesday

by Sourav D
Palo Alto’s Tesla Inc posts record earnings, cautions factory opening won’t be simple

On Wednesday, Tesla Inc., the Palo Alto, California-headquartered world’s No 1 automaker by market valuation, had beaten Wall Street estimates for third-quarter revenues, largely riding on the back of record deliveries despite a lingering chip shortage which is casting dark clouds over global auto market, however, the Californian automaker had raised an alarming bell on factory alongside supply chain backlashes over coming months.

In point of fact, latest upbeat quarterly earnings’ report from Tesla Inc., the world’s largest automaker, had been a blazing illustration that the e-vehicle industry giant had weathered a pandemic-associated supply chain disruption much better than its rivals, as the Californian e-vehicle manufacturer had reported a fifth consecutive quarter of record revenues on third quarter of its fiscal 2021 that ended on September 30, largely fuelled up by a production-surge at its Chinese Gigafactory.

Meanwhile, expressing an out-an-out optimism over Tesla Inc profit growth over coming quarters considering the automaker’s plan to launch productions at its German Gigafactory, Chief Financial Officer of Tesla Inc., Zachary Kirkhom said followed by the earnings’ report, “There's quite an execution journey ahead of us.

There are a number of unknown unknowns that we need to work through, we are kind of also in this uncertain environment with respect to cost structure.".

Tesla beats estimate for third-quarter revenues

According to Tesla Inc., Q3, 2021, earnings’ report, the American multinational automaker’s Q3 revenues surged to $13.76 billion compared to a $8.77 billion reported at the same time a year earlier, beating an analysts’ estimate of $13.63 billion, IBES data from Refinitiv had unveiled.

Nonetheless, Tesla Inc’s overall average prices dropped in Q3, 2021, as it had reportedly sold off more low-priced Model 3 alongside Model Y vehicles. However, Tesla Inc. shares, which had been up by 23 per cent thus far this year, had plunged as much as 1.64 per cent in after-market trading after rounding off the day 0.18 per cent higher to $865.80 apiece.

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