Tesla’s chaotic third quarter saw profits climb but revenue falter

Tesla faced rising transportation costs coupled with “commodity cost inflation”, ongoing component shortages, and a stronger dollar in the third quarter, all of which hurt its quarterly sales ($21.45 billion vs. $21.96 billion expected). Still, the EV automaker managed to set production records at each of its plants. According to the company’s quarterly production report released earlier this month, Tesla built 365,923 vehicles and delivered just 343,830 in the third quarter.

Revenue from auto sales hit $18.69 billion last quarter, up 55 percent year over year, which helped the company regain some momentum lost in the slower second quarter. Tesla stock values ​​have fallen more than 17 percent since the publication of this report, CNBC Reportedly and are down more than 5 percent since the close on Wednesday, when Tesla’s earnings were released. Also in the third quarter, Andrej Karpathy, Tesla’s director of AI, left the company after leading the company’s ADAS development for half a decade.

Despite those recent losses, Tesla has doubled its earnings to $3.29 billion over the past year, and “it looks like we’re going to have an epic year-end,” CEO Elon Musk said during the investor call. “We have excellent demand for Q4 and we expect to sell every car we make for it.”

Musk also provided an update on the availability of the Full Self-Driving beta. “We expect to release the full self-driving software to anyone who orders the package by the end of this year,” Musk said during the call. “It won’t have that [NHTSA] regulatory approval at this time, but the car lets you go from home to your work, your friend’s house, or the grocery store without having to touch the steering wheel.

“We’re not saying that’s ready to have nobody behind the wheel,” he clarified. “It’s just that you almost never have to touch the vehicle controls.”

Tesla has set a target of 50 percent annual growth in vehicle sales for the next few years. In 2021, Tesla delivered around 936,000 vehicles and has delivered 908,573 vehicles so far in 2022. In order to reach the growth target of 50 percent, the company has to sell a total of around 1.4 million vehicles this year Autoblog Notes, 490,000 of which are coming in the fourth quarter. Tesla has also recommitted to starting deliveries of its Semi in December. “Factories are running at full speed and we ship every car we make and keep operating margins high,” Musk said.

These developments come as Musk’s potential $44 billion purchase of Twitter is making its way through the courts, and could force the Tesla CEO to sell more of his stake in the automaker to fully fund the deal. “I’m excited about the Twitter situation because I obviously know this product incredibly well and it’s an asset that has been languishing for a long time and has incredible potential,” Musk said.

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https://www.engadget.com/tesla-q3-2022-earnings-213910834.html?src=rss Tesla’s chaotic third quarter saw profits climb but revenue falter

Russell Falcon

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