Here are the highlights of Teslas third quarter results:
u2014u2014Teslas revenue in the third quarter was $8.77 billion, up 30% from $6.3 billion in the same period last year, exceeding the average analyst expectation of $8.36 billion;
u2014u2014Teslas net profit attributable to ordinary shareholders was $331 million in the third quarter, up 131% from $143 million in the same period last year, but lower than analysts expected $394 million;
u2014u2014Teslas earnings per share attributable to ordinary shareholders was $0.76 in the third quarter, up 105% from $0.37 in the same period last year, exceeding the average analyst expectation of $0.57;
u2014u2014Tesla produced 145036 vehicles in the third quarter, up 51% from 96155 in the same period last year. The total delivery volume was 139593 vehicles, an increase of 44% compared with 97186 vehicles in the same period last year;
Revenue increased by 30% year-on-year, which Tesla attributed to the substantial increase in vehicle delivery volume, operating revenue also increased to $809 million and operating profit margin increased to 9.2%. Teslas auto business revenue in the third quarter was $7.6 billion, about 91% of total revenue. Tesla received $397 million in regulatory credit revenue in the quarter, nearly double the so-called green credit in the same period last year.
At Teslas 2020 annual shareholders meeting and battery day in September, Elon Musk, Teslas chief executive and co-founder, said car deliveries in 2020 would increase by 30% to 40% over last year, implying that total deliveries would range from 477750 to 514500. But the company said in the financial report that achieving this goal is becoming more difficult, mainly due to the increase in production of modely and the Shanghai plant.
While the automotive business is clearly still the most important source of revenue, Teslas solar and storage businesses both improved significantly in the third quarter. When energy storage reached a record 759 megawatts in the quarter, the company said it was growing million packs of large batteries while demand for Powerwall remained strong. We still believe that the energy business will eventually be as big as our car business, Tesla said
According to Tesla, the solar business is also improving. Our recently launched low-cost solar strategy has begun to have an impact, the company said in its earnings statement. Compared with the previous quarter, the number of solar energy headquarters in the third quarter more than doubled, reaching 57 megawatts, and the deployment of solar roofs was almost three times that of the previous quarter.
Teslas cash and cash equivalents increased by $5.9 billion to $14.5 billion at the end of the third quarter, mainly due to its recent capital raising of $5 billion, plus free cash flow of $1.4 billion, partially offset by a decrease in working capital credit lines. The companys operating expenses also rose. New plants in Austin and Brandenburg in Germany mean additional spending, with Tesla investing $1.25 billion, up 33% from the previous quarter.
Teslas rise highlights investor confidence in the future of electric vehicles and the companys transformation from a niche car manufacturer to a global leader in clean vehicles. But Craig Irwin, an analyst at Roth capital partners, warned that Teslas lead could soon diminish. The valuation of the company is still incredibly high, as if it were operating in a vacuum, but competitors are catching up, he said. By the end of 2024, there will be more than 400 electric vehicles on the road, which means that the market competition will be more intense, which will have an impact on Tesla.
Tesla does not have a breakdown of regional sales, but data from China show that sales of the Tesla Model 3 were roughly flat from July to September. Overall, Tesla sold about 34100 model 3 models made in Shanghai in the third quarter. Tesla said on Wednesday that production of the model 3 at its Shanghai plant had increased to 250000 vehicles, close to its target production. At the same time, the Shanghai plants production capacity of model y has increased to 250000 vehicles.
Teslas plant in Fremont, California, has a capacity of 590000 vehicles, including the model y. The automaker said it would focus on improving cost efficiency at its California and Shanghai plants and increase capacity as soon as possible to keep up with demand.
The company is building more car and battery plants in Berlin, Germany, and Austin, Texas, to boost production of existing cars and launch new models, including its electric pickup truck cybertruck and electric truck semi. Tesla said its German plant is expected to start production in 2021.
Tesla shares rose 3.4% to $437 in after hours trading after the results were released. Tesla withstood the broader downward trend of the automotive industry in 2020, driving its share price up about 400% with a current market value of $393.8 billion, driven by stable sales and continuous profits. Although Tesla lags behind its competitors in terms of sales, revenue and profits, Tesla has become the worlds largest car manufacturer by market value. (small)
Source: Qiao JunJing, editor in charge of Netease science and Technology Report_ NBJ11279