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Sep 30, 2021
Tesla Q3 2021 Earnings Report
Tesla achieved record net income, operating profit, and gross profit, with operating margin exceeding medium-term guidance.
Key Takeaways
Tesla's Q3 2021 was a record quarter with best-ever net income, operating profit, and gross profit. The company achieved a 14.6% operating margin, exceeding its medium-term guidance, despite a decrease in ASP due to a mix shift towards lower-priced vehicles. Tesla faced challenges including semiconductor shortages and port congestion, but managed to maintain production.
Achieved record vehicle production and deliveries in Q3.
GAAP operating income reached $2.0B with a 14.6% operating margin.
GAAP net income was $1.6B and non-GAAP net income (ex-SBC) was $2.1B.
Free cash flow was $1.3B in Q3.
Forward Guidance
Tesla plans to grow manufacturing capacity, targeting 50% average annual growth in vehicle deliveries. The company expects operating margin to continue growing and is targeting first Model Y production builds in Berlin and Austin before the end of the year.
Positive Outlook
- Plan to grow our manufacturing capacity as quickly as possible.
- Expect to achieve 50% average annual growth in vehicle deliveries over a multi-year horizon.
- Have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses.
- Expect our operating margin will continue to grow over time, continuing to reach industry-leading levels with capacity expansion and localization plans underway.
- Continue to target our first Model Y production builds in Berlin and Austin before the end of the year.
Challenges Ahead
- The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain.
- The pace of the respective production ramps will be influenced by the successful introduction of many new product and manufacturing technologies in new locations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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