The global supply-chain meltdown seems not to be not a problem for Tesla (TSLA) +0.18% as the company sees its biggest net earnings this quarter. According to the company, it noted a record sale of electric vehicles last summer, and that’s despite the chip shortage it was struggling with.
The company earned $1.62 billion in the third quarter, breaking the old record of $1.14 billion set only in the second quarter of this year. Comparing these figures to the profit from the same quarter of 2019, which was $331m, the company’s profit is 5 times greater.
In the third quarter this year Tesla delivered 241,300 vehicles which is a 72% growth comparing to 140,000 cars sold at the same time last year. Up to this time the company has sold 627,000 vehicles, beating last year’s number of 499,550 cars in total.
Senior Analyst at Investing.com, Jesse Cohen said that Elon Musk, CEO of Tesla, “delivered another terrific quarter as Tesla continues to execute flawlessly”. “It has done an outstanding job navigating through global supply chain and logistics challenges, weathering the storm significantly better than rival automakers” he added further. (The Guardian, 2021)
“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. […] 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” said the company to its shareholders in a statement. (The Guardian, 2021)
Elon Musk announced recently that Tesla’s headquarters will be moved to Austin in Texas. The company said in a statement that the construction of the new factory is going as planned and the company is preparing all necessary equipment. The company recently received approval from Texas regulators to launch new insurance product to its customer in Texas.
The new auto insurance will allow drivers to track their driving, which can lead to lower costs of insurance after proving a safe drive history.
“Because our cars are connected, because they are essentially computers on wheels, there is enormous amounts of data available to us to be able to assess the attributes of a driver,” said CFO of Tesla, Zach Kirkhorn. “So what we have created is a model for predicting the likelihood of collision over time with decent accuracy”, he added further. (The Guardian, 2021)
The service is going to be launched in all Tesla’s markets, but it first needs to receive pending regulatory approval.
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*Stock percentage taken on 21.10.2021 at 13:12.
*Paul, Kari (21. October 2021). The Guardian: Tesla reports record quarterly earnings despite global supply chain meltdown. Last viewed on 21.10.2021 on https://www.theguardian.com/technology/2021/oct/20/tesla-third-quarter-net-earnings-global-supply-chain
