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Saturday, October 16, 2021

Tesla Beats Market Estimates And Own Projection To Post Record Q3 Numbers

Tesla Inc., the EV giant, delivered better results than estimates for the latest Quarter. According to Bloomberg News, the company sold 241,300 cars globally. As per CEO Elon Musk, the company surpassed its own projection of 2,21,952 for the Third Quarter. 

One of the most crucial barometers for electric vehicles demand is the quarterly deliveries of Tesla. The numbers indicate consumers’ demand for EVs and their gradual shift from gasoline-powered engines. 

In a statement released by Tesla on Saturday, it thanked its customers for showing patience while working on its supply chain globally and challenges faced logistically. The major contribution for the overwhelming customers came from models Y and 3.

The third-quarter results beat the average delivery estimates of 2,23,677 projected by 12 analysts, which Bloomberg surveyed. The projections of 2,21,952, which were sent by Tesla to its Investors was also surpassed.

Tesla delivered 40050 more EVs compared to its previous Quarter. It surpassed the company’s record of 201,250 sold in the Second Quarter. 

Analyst at Wedbush Securities, Dan Ives, in a note to its clients, said, “The major bottleneck in the auto industry these days was a shortage of chips apart from logistical issues globally. The numbers delivered looked quite impressive and point to a demand trajectory that looks robust for the last Quarter of 2021 and as we advance in 2022.” 

The EV giant shares closed on Friday unchanged at $775. The stock has appreciated less than 10% in 2021 so far. It also trails S&P 500 index, which it joined last year. 

Compared to other automakers, Tesla has done well comparatively. The last Quarter saw U.S. vehicle manufacturers’ sales slump due to supply chain disruptions, affecting productions. Car giants General Motors truck plants idled in September as its sales at domestic market suffered a drop by a third in Q3.

Tesla does not give sales breakup geographically, but its largest market is U.S. and China. Tesla’s car models S, X, Y, and 3 are produced in its Fremont factory in California, while the models Y and 3 are manufactured in Shanghai. Models 3 and Y accounted for more than 96% of sales for record-breaking Q3. 

Tesla’s new plants in Texas, Austin, and Berlin are close to completion. The production and delivery dateline were released for the first time, which said that Tesla would hold its annual shareholder’s meeting in Austin on Thursday. 

The head of investors relations, Martin Verica, did not comment when asked if Tesla has shifted their headquarters to Austin. In September, Musk urged its employees to go supper hardcore to deliver decent numbers in Q3 through an email. 

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Josie Patra
Josie Patra is a veteran writer with 21 years of experience. She comes with multiple degrees in literature, computer applications, multimedia design, and management. She delves into a plethora of niches and offers expert guidance on finances, stock market, budgeting, marketing strategies, and such other domains. Josie has also authored books on management, productivity, and digital marketing strategies.

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