Economy|Automotive Industry

Tesla quarterly earnings beat estimates as car sales soar
Sales at Elon Musk’s electric vehicle and clean energy firm rose 57 percent to $13.8 billion, while earnings came to $1.86 a share on an adjusted basis, the California-based firm said.
Tesla, which delivered 241,300 cars worldwide in the third quarter, is expanding on three continents and is nearing completion of new factories in Texas, United States and Berlin, Germany [File: David Paul Morris/Bloomberg]
By Dana HullBloomberg
20 Oct 2021
Tesla Inc. reported revenue that fell short of Wall Street estimates, but managed to beat third-quarter earnings projections despite a semiconductor shortage and supply-chain challenges that have stymied competing automakers.
Sales at Elon Musk’s electric-vehicle and clean-energy company rose 57% to $13.8 billion, missing estimates of $13.9 billion. Earnings came to $1.86 a share on an adjusted basis, the Palo Alto, California-based automaker said Wednesday. That beat the $1.67 a share average of analysts’ estimates. The results mark the ninth straight quarter of profit for the 18-year-old electric carmaker.
The company’s automotive gross margin, a key gauge of profitability, widened to 28.8% in the latest quarter, up from 27.7% a year earlier.
Shares of Tesla fell as much as 1.5% to $853 in after market trading. They were little changed at $865.80 at the close of regular trading in New York.
“The stock is zig-zagging because this was expected,” Gene Munster of Loup Ventures said of the strong gross margins, which came to 28.8% excluding regulatory credits. “But they are making a lot of progress when it comes to profitability.”
Tesla is expanding on three continents and is nearing completion of new factories in Austin, Texas, and Berlin.  At its shareholder meeting earlier this month, Chief Executive Officer and top shareholder Musk said his company will move its corporate headquarters to Austin, without giving a date.
Tesla delivered 241,300 cars worldwide in the third quarter, a record for the company. Tesla currently makes the Model S, X, 3 and Y at its factory in Fremont, California, and the Model 3 and Y at its plant in Shanghai. More than 96% of sales in the quarter were the Model 3 and Y.
Revenue from regulatory credits came to $279 million, down from $354 million three months earlier. The company also reported a $51 million Bitcoin impairment.
PayPal wants to buy pinboard site Pinterest for $45bn: Sources
The talks come as internet shoppers increasingly buy items they see on social media sites like TikTok and Instagram.
20 Oct 2021
Big time: Bitcoin rallies above $66,000 to fresh all-time high
The cryptocurrency topped $66,000 for the first time ever as optimism about its acceptance by the mainstream grows.
20 Oct 2021
Vroom vroom: Tesla’s shares rally over 50% from March lows
The carmaker has seen eight weeks of gains, its longest winning streak since before the pandemic battered markets.
18 Oct 2021
Netflix employees walk out over Chappelle comedy special
Netflix co-Chief Executive Officer Ted Sarandos has defended the company’s decision to air the special.
20 Oct 2021
Oil drops for sixth straight week as Omicron jolts markets
Wall Street ends volatile week lower as investor jitters grow
Lithuania asks EU for help in China trade dispute
Canada’s job market blows past estimates quadrupling gains
CNN fires Chris Cuomo over role in brother’s harassment scandal
Dozens arrested in Pakistan after Sri Lankan lynched, set ablaze
Iran explosion near Natanz nuclear facility a controlled test
Indonesia’s Semeru volcano erupts, one dead, dozens injured
Follow Al Jazeera English:
© 2021 Al Jazeera Media Network