Tesla Q3 Beat Profit Projections Amidst Semiconductor Woes

Tesla Q3 Revenue Skirts Semiconductor Woes and Beats Profit Projections
Image source: India Today

Tesla to Build First Ever Humanoid RobotDespite obstacles like port backups and even rolling blackouts in China, Elon Musk’s electric car company had its ninth straight quarter of profit. The three-month period saw revenues surge 57% to $13.8 billion compared with last year, which is a record for Tesla Motors’ 18 years under operation!

Tesla Inc. reported third-quarter revenue that fell short of Wall Street estimates but managed to beat profit projections, overcoming a semiconductor shortage and supply-chain challenges that have hindered competing automakers.

The company’s stock price increased four times during this period despite the global semiconducting issues they faced, which has enabled (Tesla) to continue reaching new milestones, like selling more vehicles than any other car manufacturer in history!

What was announced?

Tesla also announced their Q3 earnings on Wednesday morning, where we learned how well things went for Tesla over both financial performance & also when it comes down.

Tesla’s earnings report was not only historic for its automotive industry, but it also marks the ninth straight quarter of profitability.

The company overcame obstacles like port backups and even rolling blackouts in China to stay afloat during this period, with record sales numbers coming out both North America as well as Asia Pacific regions where they are focused on expanding efforts further into electric vehicles that will eventually replace gas-powered cars by 2020 or sooner than you think!

How much was the estimation for this month?

Elon Musk’s electric-vehicle and clean energy company, Tesla Inc., missed estimates by a huge margin. Earnings were $1.86 per share on an adjusted basis which was much lower than the average estimate of analysts who forecasted earnings at least 2x this amount or more – namely because they expected revenue to be higher due to strong demand for their products in China where it operates as well other markets like Europe with less competition from other automakers such as BMW AG.

The announcement about missing expectations came during the Wednesday morning trading session when investors saw shares fall over 6%.

Tesla’s production was less impacted by the global shortage than some other carmakers, who have had to close factories and cut production.

The company said they were experiencing chip shortages and port congestion or blackouts that caused them difficulty in keeping their plants running at full speed.

Tesla said that its supply-chain issues ranging from semiconductor shortages to congestion at ports hurt the company’s ability to boost output and meet the growing demand for its electric vehicles.

Elon Musk’s decision to not attend any meetings:

In a move that surprised many, Tesla CEO Elon Musk cancelled his participation in the company’s quarterly earnings calls with Wall Street analysts to make way for Chief Financial Officer Zachary Kirkhorn.

He was joined by two other top executives from across all of the automaking: vice president Drew Baglino on powertrain issues and engineering chief Lars Moravy who manages vehicle development at Telsa’s Palo Alta, California factory.

The company is trying as far it can to maximize that capacity and meet demand, but the result will be an increased wait time for consumers.

A profound awakening has happened when it comes to electric car production; there just isn’t enough space within their current facilities because additional building costs were incurred during construction on another project that required its type of permit process.

Tesla’s shares fell more than 1% in extended trading on Wall Street today, and they were little changed at $865.80 at the close of the New York stock exchange (NYSE).

The company announced that its automotive gross margin has widened to 28.77% when regulatory credits are excluded from this figure which shows progress for profitability; however, analysts had expected them to make much faster strides toward achieving this goal with projections ranging anywhere between 20 – 60%.

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