Tesla on Wednesday said the third quarter of 2021 has been a record period despite chip storage & supply chip storage. The electric car company recorded its best-ever net income, operating profit and gross profit.
Operating income for the third quarter was at $2 billion while net income for the same period was at $1.6 billion. This according to the company is the highest profits they registered.
Away from numbers, the third quarter had the most record vehicle production and deliveries. Tesla also rolled out its Full Self Driving city Beta to a wider population in the month of October.
Tesla’s CFO Zach Kirkhorn gave the earnings call for the first time. This after Elon Musk said He will no longer take them. Last quarter earnings calls had loads of profits and deliveries. The electric car company made a whopping $1.1 Billion in profit and $11.9 billion in total revenue.
For its car segment, the Model 3 and Model X made the bulk of Tesla’s sales, with 200,000+ deliveries for the second quarter of the year. Sales from abroad have significantly boosted its car sales. The newly built Chinese factory has been churning out cars all day long. Even Tesla sees it as a “primary vehicle export hub.”
Despite the global chip storage shortage, Tesla was able to hit record profits by paying for chips in advance and rewriting its car software.
CEO Elon Musk in the earnings call mentioned “We were able to substitute alternative chips, and then write the firmware in a matter of weeks,”
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Where other car manufacturers have had slow production, factory closure due to the global chip storage. Tesla has been able to deliver more than 200,000 vehicles in the last quarter.
The Electric car CEO Musk considers the chip shortage as very threatening, “It does seem like it’s getting better.” It could eventually affect its own production, “The global chip shortage situation remains quite serious.”
“For the rest of this year, our growth rate will be determined by the slowest part in our supply chain.” Tesla relies on chips for most parts of its cars to function.
While relying on its Fremont factory for the majority of its car production in the United States. Tesla has been producing at a limited capacity. It even had to delay its semi-truck production until 2022, based on the reality of things. Tesla is making huge investments to maintain its profits and deliveries. The company is building new factories in Germany and Texas.
For Europe and overseas, the combined China and Germany factories will handle global demand for its electric cars. While it’s new to be completed Texas factory would handle Its Trucks and Model Y production.
Tesla’s CFO has this to say about its challenges “A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed.
“We believe our supply chain, engineering and production teams have been dealing with these global challenges with ingenuity, agility and flexibility that is unparalleled in the automotive industry,” he said.
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