Tesla’s quarterly earnings will be released Tuesday, and analysts are expecting another record-breaking quarter.
Tesla is poised for a record quarterly earnings on supply. Tesla’s CEO Elon Musk said that the company will be able to make as many as 100,000 cars per year.
Tesla Inc. TSLA -0.67% is poised to post its third straight quarterly profit, due in part to its ability to overcome ongoing global supply-chain difficulties.
Despite component shortages that have hampered automakers this year, Tesla delivered over 241,300 cars to consumers in the three months ending in September, increasing nearly 73 percent from a year earlier.
An increase in sales of cars built in China, which is now home to Tesla’s biggest auto factory by production, fueled that rise.
According to analysts polled by FactSet, Tesla is expected to announce a third-quarter profit of roughly $1.3 billion after the bell on Wednesday, up from $331 million a year ago. Revenue is expected to be approximately $13.6 billion, up from $8.8 billion in the third quarter of previous year.
According to experts, Tesla is more vertically integrated than many other automakers, which has aided the business in navigating the chip shortage more easily than some of its rivals. “Given its software lead, Tesla has a superior capacity to pivot in chip sourcing,” Credit Suisse Group AG analyst Dan Levy said in a recent letter to investors.
A Tesla vehicle skeleton at a showroom in China, which is currently home to Tesla’s biggest auto facility by production.
Sheldon Cooper/Zuma Press photo
According to FactSet, analysts predict Tesla’s car deliveries to rise to roughly 266,000 in the current quarter, putting the firm on track to deliver over 900,000 vehicles to consumers by 2021. The firm has said that it plans to raise deliveries by more than half a million automobiles from last year’s tally of almost half a million.
Tesla stock has risen in recent weeks, finishing Tuesday at $864.27, close to its January high of $883.09.
Finding remedies for component shortages, on the other hand, hasn’t been cheap.
“We are witnessing tremendous cost pressure in our supply chain,” CEO Elon Musk stated earlier this month at the company’s annual shareholders meeting. “The amount of money we’re spending on flying components all over the globe isn’t fantastic, but it’s hopefully just temporary.”
At the conference, Mr. Musk also mentioned that component shortages were causing Tesla product delays. The launch of the company’s Cybertruck pickup has been delayed by nearly a year. The commencement of production is now expected to be in late 2022. The company’s long-delayed semitrailer vehicle, which was supposed to be delivered in 2019, has been pushed back even further, to 2023.
Mr. Musk said, “We were really constrained by various supply-chain bottlenecks, like so many supply chains of so many different sorts, not just chips.”
Tesla will relocate its headquarters to Austin, Texas, according to CEO Elon Musk, who compared the plant in Fremont, California, to “Spam in a can.” He said that the electric car manufacturer will continue to grow in California. Brendan Smialowski/AFP/Getty Images photo
Mr. Musk, who is a regular on Tesla’s earnings calls, isn’t expected to appear on Wednesday. The billionaire, who also owns Space Exploration Technologies Corp. and has previously expressed dissatisfaction with his workload, said in July that he would no longer be participating in such calls by default.
Tesla plans to establish the framework for future expansion by building two new car plants by the end of the year, one in Austin, Texas, where the firm will relocate its headquarters, and the other outside of Berlin.
Meanwhile, the company’s sophisticated driver-assistance systems, which aid with activities like as maneuvering inside a highway lane, are coming under more scrutiny.
Last week, the federal auto-safety regulator, the National Highway Traffic Safety Administration, expressed worry that a lack of openness around such features—which do not make cars autonomous—could jeopardize safety supervision. After a series of collisions involving Teslas and one or more parked emergency vehicles, the agency launched an inquiry into Tesla’s Autopilot driver-assistance technology in August.
Tesla has yet to react to requests for comment on the investigation. Tesla has been required to disclose a large amount of information on its advanced driver-assistance systems as part of the NHTSA’s inquiry. The first set of data is handed to the National Highway Traffic Safety Administration on Friday.
Three electric car prototypes have been presented by Foxconn, the Taiwanese firm best known for building Apple goods. Stephanie Yang of the Wall Street Journal attended the launch event to learn more about how the firm is broadening its operations in order to get a footing in the car sector. I-Hwa Cheng/Bloomberg News photo
Rebecca Elliott can be reached at [email protected]
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Tesla is poised to have a record quarterly earnings call in the second quarter of 2021. The company has been posting impressive numbers, and it looks like Tesla will be able to continue its trend. Reference: tesla earnings call q2 2021.
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