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Has on Wednesday Tesla, Inc. continued its meteoric rise when it posted its fifth straight quarterly profit. Tesla has also set a sales record, triggered by an increase in vehicle deliveries and the sale of carbon credits to other automakers.
Tesla Inc is going through the roof
Revenue increased 30% year over year, from $ 6.30 billion in the same period last year to a record $ 8.77 billion. Analysts had only expected revenue of $ 8.36 billion. But Tesla would not have had a profitable quarter without the sale of $ 397 million in regulatory loans.
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In fact, this is the fourth straight quarter that Tesla would not have been profitable without this revenue stream, which accounts for 7% of total automotive sales. Net income was $ 331 million, more than three times earnings for the second quarter. The plant was temporarily closed due to the pandemic. Without taking the items into account, earnings were 76 cents per share. Operating income also rose to $ 809 million and improved operating margins to 9.2%. Tesla is no longer starving for funds as the company closed the quarter with $ 14.5 billion in cash. That means an increase of 69% in just three months.
Race of developers
Musk announced that the Cybertrucks he has ordered will be delivered at the earliest in 2022 or the end of next year. But on the same day the revealed General Motors Companythat an electric version of their Hummer pickup truck will challenge Tesla’s Cybertruck. In September also announced the Ford Motor Company announced that they would lower the price of their Mustang Mach E. This increases competitiveness. As more and more competitors enter the race, environmental agency loans will dry up for Tesla, which has been a significant source of income for Tesla for more than a year.
Technical improvements
Back in September, Musk unveiled a far-reaching new vision for Tesla’s battery manufacturing plans and a roadmap for achieving affordable EV. Not to mention the ambitious plan to deliver up to 40% more EVs than last year.
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On Wednesday, the focus was on improving manufacturing costs, efficiency and capacity as quickly as possible. However, Musk said the company won’t count on producing cells of its own until 2022. The battery supply will continue to rely on the Panasonic Corporation and leave other external partners. Production at the Berlin plant will start next year. At the same time, its largest battery and vehicle factory to date is being built in Austin, Texas, at top speed.
Confident look into the future
The goal of delivering half a million vehicles by the end of this unprecedented year remains. That means Tesla will have to significantly increase its sales in the current quarter. With a market capitalization of more than $ 394 billion, Tesla has already become the largest global automaker. Regardless of the fact that the company lags behind its competitors in key financial metrics, namely sales, revenue and profit.
But unlike its automotive competitors, Tesla has defied the downturn caused by the pandemic. The entire automotive industry was harmed on its way by the pandemic. Tesla’s shares still rose 400% that year. It looks like Tesla has enough cash to fund Musk’s roadmap and long-term goals.
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