Tesla doubles net income to $3.3 bn in Q3, automotive sales up 55%

by IANS |

San Francisco, Oct 20 (IANS) Elon Musk-run Tesla has reported $3.3 billion in net income for the third quarter (Q3), more than double from a year ago, and its automotive revenue jumped 55 per cent from the same period last year.

In a letter to the shareholders, the electric car-maker said late on Wednesday that the third quarter was another strong quarter with record revenue, operating profit, and free cash flow.

"In the last 12 months, our free cash flow exceeded $8.9 billion. Our operating margin reached 17.2 per cent in Q3," the company said in a statement.

Tesla's automotive revenue was $18.69 billion, an increase of 55 per cent from a year ago.

"We remain focused on increasing vehicle production as quickly as possible, by increasing our weekly build rate in Fremont and Shanghai and progressing steadily through the production ramps in Berlin and Texas," said the company.

During an earnings call, Musk hinted about a possible share buyback.

"I can't emphasise enough that we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see. The factories are running at full speed and we're delivering every car we make, and keeping operating margins strong," he told analysts.

Tesla might do a "meaningful buyback" next year, potentially between $5 billion and $10 billion, Musk said.

"I'm of the opinion that we can far exceed Apple's current market cap. In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined. That doesn't mean it will happen or will be easy," he noted.

The company said that logistics volatility and supply chain bottlenecks remain immediate challenges, although improving.

"We continue to believe that battery supply chain constraints will be the main limiting factor to EV market growth in the medium and long terms. Despite these challenges, we expect to continue to deliver every vehicle produced while maintaining strong operating margins," the electric car-maker said in the statement.

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