Tesla announced its third-quarter earnings this week, reporting financial results that set new company records but still fell short of Wall Street expectations.
The electric vehicle maker reported a net income for the third quarter of $3.3 billion, almost double the $1.62 billion from the same period last year. The company reported earnings, excluding some items, of $1.05 per share compared to 62¢ per share during the third quarter of 2021.
The automotive business continues to dominate the most significant part of Tesla’s business, with revenues landing at $18.69 billion for that division during Q3 2022. That’s a 55% increase from Q3 2021. Total revenues reached $21.45 billion. Gross margins for the automotive division were 27.9%, holding steady from the second quarter but down from the high mark of 32% reached earlier this year.
Tesla reported a record number of 343,830 deliveries for the third quarter earlier this month after COVID shutdowns at its factory in China. That result also fell short of analysts’ expectations. The company also produced more vehicles than it delivered, reporting production figures of 365,923 units for the third quarter.
The good news came from Tesla’s energy unit, which reported that energy storage deployments increased 62% year-over-year, from roughly 1.29 GWh during Q3 2021 to 2.1 GWh this year. A statement from Tesla called it “by far the highest level [of growth] we have ever achieved.”
In a letter to shareholders, the EV maker held firm on its goal of achieving a 50% annual growth in vehicle deliveries and said planned deliveries of its electric Semi-trucks to customers are still expected to start in December.
As for factors cutting into third-quarter profitability, Tesla pointed to increased raw material costs, issues ramping up production at its new factories in Berlin and Texas, and the production of its new 4680 batteries. The company also pointed to the strengthening of the American dollar as a factor. Tesla stock fell more than 5% after the announcement.
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