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Tesla published a strong set of Q3 2021 results, with revenues rising by almost 57% year-over-year to about $13.75 billion, and adjusted EPS rising almost 2.5x to $1.86. While revenue growth was driven by expanding sales of the Model 3 and Y vehicles and greater traction in China, the company also made solid progress boosting its margins. Automotive gross margin, excluding regulatory credits, rose to 28.8% in Q3, up from just 23.7% last year and 25.8% in Q2. Margins have scope to grow further, as Tesla ramps up sales of its refreshed Model S and X luxury vehicles. Model S and X deliveries dipped -39% year-over-year in Q3 as the company is currently rolling out refreshed versions of the vehicles.
During its Battery Day event held in mid-September 2020, Tesla outlined a host of improvements to its battery technology including the way batteries are designed, manufactured, and integrated into its vehicles. While these enhancements could take about three years to fully materialize, Tesla expects them to help cut the cost per kilowatt-hour of batteries by about 56% per kilowatt-hour. Tesla is also betting big on manufacturing its own batteries and targeting 100-gigawatt hours (1 gigawatt-hour is 1 million kilowatt-hours) of internally produced battery capacity by 2022. For perspective, that’s about 3x the battery production capacity that it has at Gigafactory 1, in collaboration with Panasonic.
Tesla is a Silicon Valley-based automobile manufacturer focusing on the design, manufacture, and sale of electric vehicles and related technologies. The company's current model line-up includes the Model S luxury sedan, the Model X luxury SUV, the Model 3 sedan, and the Model Y compact SUV. Tesla also sells renewable energy products such as solar panels and battery technology. The company's upcoming products include the Cyber Truck electric pick-up, the Semi truck, and the second-generation Roadster sports car.
The majority of Tesla's value comes from its Mass Market vehicles.
Tesla Motors launched the Model S, a battery-electric luxury sedan, in June 2012 and followed up with the Model S SUV. The two vehicles together sell under 100k units per year. In 2017, the company introduced the Model 3, a mass-market electric car with a base price of under $40,000. The company delivered roughly 300k units of the vehicle in 2019. In 2020 Tesla launched a compact SUV - dubbed the Model Y and the Cybertruck pickup truck is likely to go into production by 2021. Tesla is expected to take its first step away from the luxury passenger vehicle market into the commercial space, with plans to launch an all-electric semi-truck.
President Joe Biden committed that the United States would reduce its greenhouse gas emissions by between 50% to 52% below its 2005 emissions levels by the year 2030. The U.S. has also pledged to achieve carbon neutrality by 2050. We are seeing similar commitments from other developed countries across the world. This means that the process of decarbonizing the transportation space will have to speed up, with gasoline-powered vehicles being replaced with cleaner EVs and hybrids. This should bode well for Tesla, which is the market leader in the premium EV space.
According to Bloomberg New Energy Finance (BNEF), the industry average battery costs (cell + packaging) have declined from $288 per kilowatt-hour to $176 between 2016 and 2018, driven by higher volumes and improved technologies. Tesla's battery costs are likely to be lower than the broader industry, considering the company is one of the largest EV players.
Mainstream automotive manufacturers are getting more serious about their electric vehicle programs, as they look to take advantage of the performance and cost advantages offered by all-electric drive-trains. General Motors now offers the Chevy Bolt, an all-electric vehicle with a range of over 200 miles, while Nissan launched the second generation of its popular Leaf with an improved 150-mile range. Volkswagen announced that it would invest as much as 70 billion euros (~$84 billion USD) to bring around 300 electric models to market by 2030.
In order to reduce dependence on oil, governments across the world are providing incentives to both consumers and manufacturers for the adoption of electric cars. In the U.S., for example, the federal government offers tax credits of up to $7,500 for the purchase of "advanced technology vehicles" (this includes EVs although Tesla vehicles no longer qualify for this credit). There are several other regulations, such as corporate average fuel economy (CAFE) regulations, the Zero Emission Vehicle program (ZEV), and subsidized loans for battery research and the manufacture of electric cars that can accelerate the pace of adoption.
Tesla (NASDAQ:TSLA) published a stronger than expected set of Q3 2021 results despite the ongoing chip shortages and supply chain issues weighing on the automotive industry. While Tesla's adjusted EPS rose by about 2.5x to $1.86, almost $0. ...More
Tesla (NASDAQ:TSLA) is expected to publish its Q3 2021 results after the markets close on Wednesday, October 20. The electric vehicle bellwether has already provided delivery figures for the quarter, noting that it sold a record 241,300 vehicles, marking a sequential increase of 20% and a year-over-year increase of almost 73%, despite the ongoing semiconductor crunch and logistics ch... ...More
Ford (NYSE:F) and Tesla (NASDAQ:TSLA) are perhaps two of the best-known American automotive brands. Tesla is now the world's most valuable automaker by far, valued at about $780 billion, or 19x trailing revenues, as investors are betting that the company's earl... ...More
Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL) are two of the most iconic high-tech American brands with many similarities. Both companies are known to think differently, challenging the status quo. ...More
Tesla (NASDAQ: TSLA) published a solid set of delivery numbers for Q3 2021 late last week, noting that it had delivered a record 241,300 vehicles for the quarter, a sequential increase of 20% and a year-over-year increase of almost 73%. ...More
Tesla stock (NASDAQ:TSLA) declined by about 1.7% in Tuesday's trading, compared to the Nasdaq-100 which fell by almost 3% due to rising bond yields and a decline in the U.S. consumer confidence index. Although Tesla has typically been more sensitive to market declines, being a high multiple, high growth stock, it has held up better through the current volatility. ...More
While Tesla stock (NASDAQ: TSLA) underperformed over the first half of 2021, due to the semiconductor shortage, some regulatory issues in China relating to safety, and also due to the broader market rotation from growth stocks to cyclicals, it has picked up nicely over the last few months. The stock remains up by almost 10% over the last month and by over 20% over the last quarter. ...More
Investors have been betting that Tesla's (NASDAQ:TSLA) lead in self-driving technology – one of the most powerful trends in the auto market – will help it shape the future of transportation. ...More
What? The production of Tesla's (NASDAQ:TSLA) Cybertruck pickup has been delayed to 2022. The vehicle was initially slated to go hit the assembly line in the second half of 2021. ...More
Tesla stock (NASDAQ: TSLA) is up by 8% over the last week (five trading days) and currently trades at about $710 per share. The gains follow Tesla's solid Q2 2021 results, which were driven by strong sales of the Model 3 and Model Y vehicles and rising margins. ...More
Tesla (NASDAQ:TSLA) published a stronger than expected set of Q2 2021 results, driven by strong sales of its Model 3 and Model Y vehicles and rising margins. While adjusted EPS rose by about 3x to $1.45, almost $0.50 ahead of estimates, revenues rose by 98% year-over-year to around $12 billion, versus our estimate of $11 billion. ...More
Tesla (NASDAQ:TSLA) is expected to publish its Q2 2021 results after the markets close on Monday, July 26. The electric vehicle bellwether has already provided delivery figures for the quarter, noting that it sold a record 201,250 vehicles, a sequential increase of 9% and a year-over-year increase of about 130%. ...More
What? Tesla (NASDAQ:TSLA) delivered 201,250 cars for Q2 2021, a new quarterly record. This translates into a sequential increase of 9% and a year-over-year increase of about 130%. Why? The growth was driven primarily by the mass-market Model Y and 3 vehicles, which saw 199,360 deliveries in Q2. ...More
Tesla stock (NASDAQ: TSLA) is up by almost 11% over the last week (five trading days) and currently trades at about $690 per share. The gains have likely been driven by a couple of factors, including anticipation surrounding Tesla's Q2 delivery update which is due later this week, a broader rally in electric vehicle stocks, and tweets by CEO Elon Musk which indicated... ...More
Tesla stock (NASDAQ: TSLA) has underperformed this year, declining by almost 10% year-to-date, compared to the S&P 500 which is up by over 15% this year. Even Ford and GM are up by about 80% and 50% respectively thus far in 2021. ...More
What? Tesla (NASDAQ:TSLA) is reportedly accelerating its delivery plans for its upcoming high-performance Model S Plaid vehicles, per a report from Electrek. While Tesla was previously looking at an August to September delivery timeline, the company is now looking at a June timeline. ...More
Tesla stock (NASDAQ: TSLA) declined by almost 12% over the last week (five trading days), compared to the S&P 500 which remained roughly flat over the same period. ...More
What? Over Q1 2021, Tesla's (NASDAQ:TSLA) Energy Generation & Storage revenue rose by 69% year-over-year to $494 million. Why? The growth was driven primarily by Tesla's solar operations, which saw deployments grow over 2. ...More
Tesla (NASDAQ:TSLA) published its Q1 2021 results on Monday, reporting its highest ever quarterly profit of $438 million. However, Tesla's stock fell by around 2.5% in after-hours trading, as the surge in profits was driven primarily by $518 million in sales of regulatory credits, excluding which the company would have posted a quarterly loss. ...More
Tesla (NASDAQ:TSLA) is expected to publish its Q1 2021 results after the markets close on Monday, April 26. The electric vehicle behemoth has already provided delivery figures for the quarter, noting that it sold 184,800 vehicles over the quarter, a 2.2% sequential increase, and a 109% year-over-year increase. ...More