Tesla beats Q3 revenue estimates but supply-chain problems impacting factories

A Tesla car drives previous Tesla’s major car manufacturing facility after CEO Elon Musk introduced he was defying native officers’ coronavirus illness (COVID-19) restrictions by reopening the plant in Fremont, California, U.S. Could 11, 2020. REUTERS/Stephen Lam/File Picture
Oct 20 (Reuters) – Tesla Inc on Wednesday beat Wall Road expectations for third-quarter income on the again of report deliveries as the electrical automobile maker navigated by means of a chronic world scarcity of chips and uncooked supplies.
Tesla stated it goals to extend manufacturing within the fourth quarter from the earlier quarter, including that “the magnitude of progress shall be decided largely by exterior components.”
“Quite a lot of challenges, together with semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our capability to maintain factories working at full velocity,” the corporate stated.
Tesla, the world’s most respected automaker, has weathered the pandemic and the worldwide supply-chain disaster higher than rivals, posting report income for the fifth consecutive quarter within the July to September interval, fueled by a manufacturing ramp-up at its Chinese language manufacturing facility.
Led by billionaire Elon Musk, Tesla faces challenges of sustaining its progress within the face of a chronic chip scarcity, with its factories beginning manufacturing in Berlin and Texas this yr.
Tesla shares, up about 23% this yr, had been down about 0.6% in prolonged commerce late on Wednesday.
Income rose to $13.76 billion from $8.77 billion a yr earlier. Analysts had anticipated income of about $13.63 billion, in accordance with IBES information from Refinitiv.
Tesla’s automotive gross margin, excluding environmental credit, rose to twenty-eight.8%, from 25.8% the earlier quarter.
Tesla has been elevating costs in the USA, which helped cushion the affect of the supply-chain prices, analysts stated.
“Tesla’s common promoting worth (ASP) of autos had been greater than anticipated and the U.S. market drove that,” stated Gene Munster, managing companion at enterprise capital agency Loup Ventures, an investor in Tesla.
Tesla stated its ongoing cost-cutting efforts helped counter the declines in its ASPs stemming from gross sales of lower-priced autos just like the Mannequin 3 and Mannequin Y.
Tesla has minimize prices with using extra Chinese language elements together with batteries. The corporate posted strong gross sales in China, the place its Shanghai manufacturing facility has surpassed the Tesla manufacturing facility in Fremont, California, when it comes to manufacturing.
Reporting by Hyunjoo Jin in San Francisco and Subrat Patnaik in Bengaluru
Modifying by Maju Samuel, Peter Henderson and Matthew Lewis
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