Impressive but Controversial Third Quarter for Tesla

Tesla records an impressive third quarter. Between record production and loss of revenue.

Tesla faced rising transportation costs associated with “raw materials cost inflation”, component shortages and a stronger dollar in the third quarter of 2022, which impacted its quarterly revenue (21.45 billion vs. expected 21.96). However, the manufacturer still managed to achieve production records in all its plants. According to the quarterly production report released earlier this month, Tesla produced 365,923 vehicles in the third quarter and delivered 343,830 vehicles.

Tesla reports impressive third quarter

Automotive revenue reached $18.69 billion this quarter, up 55% year-over-year, allowing the company to regain some momentum lost in the second trimester. Tesla’s share price has lost more than 17% since the report was released, according to CNBC, and has fallen more than 5% since the market closed on Wednesday, when Tesla’s earnings were released. In the third quarter, Andrey Karpati, director of artificial intelligence at Tesla, who led the development of ADAS (Advanced Driver Assistance Systems, “advanced driver assistance systems”), also left.

Despite these recent losses, Tesla doubled its year-over-year profit to $3.29 billion and “looks like we’re going to have an epic end to the year,”CEO Elon Musk said during an investor briefing. “We have huge demand for the fourth quarter and we plan to sell all the cars we make for it.”

Between record production and revenue loss

Elon Musk also pointed to the availability of the Full Self-Driving beta: “We plan to roll out the full self-driving software to anyone who purchases the package before the end of this year,” he explained. “Permission [from the National Highway Traffic Safety Administration, NHTSA, US Federal Highway Traffic Safety Agency] is currently not yet received, but the car will be able to get you from home to work, to your friends or to visit. store without touching the steering wheel.

“We are not saying that he is ready to take someone behind the wheel. It’s just that you almost never have to touch the controls of the vehicle.”

Tesla expects a 50% annual increase in vehicle sales over the next few years. By 2021, Tesla has shipped about 936,000 units. 908,573 in 2022, according to Autoblog. To reach that 50% increase target, the company still needs to sell about 1.4 million this year, according to Autoblog, with 490,000 of those sales coming in the last trimester.. Tesla has also again committed to delivering its Semi from December. “Factories are running at full capacity, we are delivering all the cars we make, and we are maintaining a strong operating margin,” said Elon Musk.

These developments come as Twitter’s potential $44 billion takeover is still in the news, particularly in court. This could force the Tesla CEO to sell more of his shares in the company to fund the operation: “I’m excited about the Twitter situation because I know this product very well and it’s an asset that has faded a bit in a long time. time and with incredible potential.”

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