Tesla reported record profit, but shares fell
Tesla reported record profit, but shares fell. On Wednesday, after the close of trading, the world leader in the production of electric vehicles, Tesla (TSLA), said financial results for the third quarter of 2021 are high due to record quarterly deliveries of cars.
However, despite a good quarter, Tesla shares fell 1.62% in the postmarket.
CEO Elon Musk did not attend the conference on the report, Tesla’s chief financial officer Zachary Kirkhorn, who took over as chief executive officer last quarter, spoke with analysts.
Kirkhorn’s statements were more cautious than investors usually hear from Musk; Tesla did not give a forecast for the whole of 2021 and warned that profitability growth could slow down while new plants increase production.
Tesla plans to start production at its new facilities in Texas and Germany in 2021, and deliveries to consumers will begin shortly.
Tesla reported earnings per share of $1.86, three times last year’s value, 28% higher than in the second quarter and more than the latest analyst estimates of $1.67.
The company’s total profit for the quarter was $1.62 billion, which exceeded $1 billion for the second time.
Total revenue rose 119% to a record $13.8 billion but was slightly below Wall Street estimates of $13.9 billion. Statistics of Tesla’s quarterly earnings and profits.
In early October, Tesla announced another record delivery of 241300 electric vehicles, which turned out to be higher than market forecasts and 40,000 units more than deliveries of 201250 cars in the second quarter. Statistics on production and sales of Tesla from the 2nd quarter of 2019.
Last quarter, Tesla shares rose by 33.35%; the moment of the announcement of record deliveries to the start of trading on Wednesday, the stakes rose by about 12%. Over the same period, the Nasdaq Composite index has grown by about 4%.
Tesla also generated revenue of $806 million. Its energy business includes solar panels and energy storage products and $894 million from services and other income, including car maintenance and repair, auto insurance, and goods under the Tesla brand.
In response to investors’ concerns about increased control over autonomous driving systems by the US authorities, Tesla’s CFO optimistically stated that the company always works with regulators and will continue to do so as autonomous driving systems become more complex.
Tesla is changing the chemistry of batteries for its standard cars.
During the report, Tesla also said that it would change the chemical composition of the battery cells that it uses in its standard line cars worldwide.
Instead of the nickel-cobalt-aluminum composition, Tesla will use the lithium-iron-phosphate (LFP) chemical composition in the new batteries. Experts say that this is the best choice for electric vehicles with a standard range; they are cheaper, but at the same time, they are more stable and safe, and it will be easier to dispose of them.
Abuelsamid himself, the chief analyst at Guide house Insights, said that LFP batteries are beautiful for use in commercial vehicles, such as truck vans, which do not require a range of several hundred miles. In addition, he noted that the use of LFP batteries would help boost Tesla’s profits.
The two leading manufacturers of these types of battery cells are CATL and BYD. Tesla is already purchasing batteries from CATL, as the companies reported earlier.
