Tesla (NASDAQ: TSLA) announced its 2021 Q3 financial results on October 20, 2021. According to the announcement, total revenues were up 56.8% (3 months, YoY). Among them, total automotive revenue was up 58.4%. Income from operation and net income were up 147.7% and 388.8%, respectively. Adjusted EBITDA was up 77.3%. In addition, GAAP-based EPS was up 433.3% (3 months, YoY). During trading hours on October 21, Tesla’s stock price was surged by more than 3%.
According to Tesla, the average selling price (ASP) was down 6% while operating margin improved by 534bp to 14.6%. The decline in ASP is due to an increase in the lower-priced Model 3/Y delivery. Tesla’s efforts to rationalize its production and delivery are believed to have enabled selling the lower-priced vehicle at the higher margin.
Tesla is currently constructing Gigafactory Texas and Gigafactory Berlin. According to the announcement, pre-production vehicles are being fabricated in Gigafactory Texas. In addition, Gigafactory Berlin is expected to receive final permit approval before the end of the year.
Starting operations in Gigafactories Texas and Berlin would enable to receive scale merit by expanding production and delivery while making supplying costs lower in these regions.
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