Tesla Q3 2021 Earnings
10-21-21, 09:58 AM
#1
Lexus Fanatic
Thread Starter
Tesla Q3 2021 Earnings
Think we need a thread for this.
Tesla reported third-quarter earnings after the bell Wednesday, and it’s a beat on both the top and bottom lines.
The record results were driven by improved gross margins of 30.5% on its automotive business and 26.6% overall, both of which are records for at least the last five quarters.
My take-away and random thoughts: If we remove regulatory credits gross margin still at all time high, credits are cake icing at this point. No Elon on the earnings call made it super boring but probably a good thing Wall Street likes boring. Going forward I expect margins to drop in the next few quarters, Texas and Germany will see the factories ramp but as that happens operating expenses will be high production initially low. Cybertruck feels like it will never happen. Concerned Model 3 will eventually get cancelled. Model X refresh is finally being produced. Delivery times are getting out of control try to buy a Model Y long range and it says estimated delivery of April 2022.
If you don't follow Tom Nash you should he does a nice breakdown. Warning: some NSFW language
Tesla posts record revenue and profits in third quarter
Tesla reported third-quarter earnings after the bell Wednesday, and it’s a beat on both the top and bottom lines.
The record results were driven by improved gross margins of 30.5% on its automotive business and 26.6% overall, both of which are records for at least the last five quarters.
If you don't follow Tom Nash you should he does a nice breakdown. Warning: some NSFW language
10-21-21, 10:08 AM
#2
Lexus Fanatic
iTrader: (20)
i don't see 3 being canceled and of course there's talk of a '2' but maybe it will be an even more compact ute for market appeal.
agree that delivery times are bad, but it's a great problem to have that demand so far exceeds supply. musk has said their flying parts all around the world to keep things going which is wasting a lot of money, so they're clearly feeling the supply chain pinch too. wouldn't be surprised if a lot of tesla parts are sitting off shore at long beach.
anyone know what tesla's arrangement is in china? most (all?) 'foreign' companies have to 'partner' with someone locally i thought, presumably so the local partner can steal all the IP and eventually do it without the foreign company. anyway, i foresee tesla china exporting more and more vehicles in the future.
agree that delivery times are bad, but it's a great problem to have that demand so far exceeds supply. musk has said their flying parts all around the world to keep things going which is wasting a lot of money, so they're clearly feeling the supply chain pinch too. wouldn't be surprised if a lot of tesla parts are sitting off shore at long beach.
anyone know what tesla's arrangement is in china? most (all?) 'foreign' companies have to 'partner' with someone locally i thought, presumably so the local partner can steal all the IP and eventually do it without the foreign company. anyway, i foresee tesla china exporting more and more vehicles in the future.
10-21-21, 10:17 AM
#3
Lexus Test Driver
They will never cancel the 3...many other countries simply don't want an SUV. Tesla is one of the few companies in China that don't have a local partner...Elon must have made a deal somehow. The China factory will mostly service China, Australia, and the UK (any country with RHD). Europe will be serviced by the Berlin factory as it will be even bigger than the China factory.
I am really interested in the Model Y LR 7 seater for the family now. Going completely EV makes sense in California as I have 10 Superchargers in my city now...probably 20 by end of next year. My wife likes Lexus too but too bad they don't have a single thing on the near term that she can consider.
I am really interested in the Model Y LR 7 seater for the family now. Going completely EV makes sense in California as I have 10 Superchargers in my city now...probably 20 by end of next year. My wife likes Lexus too but too bad they don't have a single thing on the near term that she can consider.
10-21-21, 10:22 AM
#4
Lexus Fanatic
Thread Starter
Promised to fly Xi to Mars and back for free?
I'm wondering if we'll see a new variant of the Y out of Germany since it will have the front and rear gigacastings this means major weight savings. So a super long range or near Plaid like performance?
I'm wondering if we'll see a new variant of the Y out of Germany since it will have the front and rear gigacastings this means major weight savings. So a super long range or near Plaid like performance?
10-21-21, 10:41 AM
#5
Lexus Test Driver
I think they save weight through the use of the structural battery pack and provide slightly longer range with similar battery size but no super model using the new tech. They will most likely see the biggest benefit on the margin side but won't pass it onto consumers. I think a higher performing model will come but in the next iteration of the Model 3 which will then flow into the Model Y. Tri-motor Model 3 is more interesting to me than Plaid Model S.
10-21-21, 10:43 AM
#6
Lexus Fanatic
Thread Starter
Structural battery pack won't be a thing until 4680, no? 4680 realistically IMO will be Q3 2022.
10-21-21, 10:53 AM
#7
Lexus Test Driver
The 2170 they currently use will be the initial battery pack at Berlin so they can't house additional batteries. Only slight weight savings but nothing major. The tri-motor and additional battery can only happen with the newer 4680 so I don't think we'll see any changes in the Model Y anytime soon. Tesla is way more invested in getting the Cybertruck out the door along with the Roadster. Even Burry isn't shorting Tesla anymore...i think its pretty much clear sailing ahead on those type of issues. Now comes the hard part...execute the long-term strategy and win the EV market share battle as the traditional incumbents enter the market. I think GM and Mercedes and VW will be the ones to watch. The others are just behind right now and aren't much of a threat.
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10-21-21, 11:03 AM
#8
Tesla continues to beat the analysts. They appear to manage shortages better than every other car company, through vertical integration (chip firmware) and effective management.
The only thing that will stop Tesla from continued growth and prosperity is the loss of their leader, or so the stock houses say.
What surprises me is other companies failure to carch up with technology. As Tesla continues to improve fit and finish (through learning) and if they can produce the $25K car, their rapid growth should continue.
Legacy car companies are in a pickle, because of the huge cost barrier to EV production, not to mention every EV they do sell may be consuming their ICE market.
In the mean time, Tesla is planning on tripling the size of their Supercharger network.
While delayed delayed delated, vehicles like the SEMI, Cybertruk, van, ATV and Roadster 2 can only proceed when Tesla has capacity.
Interesting times ahead, indeed!
Oh yeah, Morgan Stanley thinks the whack Elon could become the 1st trillionaire...
The only thing that will stop Tesla from continued growth and prosperity is the loss of their leader, or so the stock houses say.
What surprises me is other companies failure to carch up with technology. As Tesla continues to improve fit and finish (through learning) and if they can produce the $25K car, their rapid growth should continue.
Legacy car companies are in a pickle, because of the huge cost barrier to EV production, not to mention every EV they do sell may be consuming their ICE market.
In the mean time, Tesla is planning on tripling the size of their Supercharger network.
While delayed delayed delated, vehicles like the SEMI, Cybertruk, van, ATV and Roadster 2 can only proceed when Tesla has capacity.
Interesting times ahead, indeed!
Oh yeah, Morgan Stanley thinks the whack Elon could become the 1st trillionaire...
10-21-21, 11:14 AM
#9
Pole Position
Building out, and now massively expanding, the supercharger network was perhaps the smartest move Tesla ever made.
Over and above all even their other genuine innovations, that one thing has done more to make their electric vehicles mainstream viable than anything else, and in future it's likely to be a massive source of revenue and growth.
Over and above all even their other genuine innovations, that one thing has done more to make their electric vehicles mainstream viable than anything else, and in future it's likely to be a massive source of revenue and growth.
10-21-21, 03:43 PM
#11
Building out, and now massively expanding, the supercharger network was perhaps the smartest move Tesla ever made.
Over and above all even their other genuine innovations, that one thing has done more to make their electric vehicles mainstream viable than anything else, and in future it's likely to be a massive source of revenue and growth.
Over and above all even their other genuine innovations, that one thing has done more to make their electric vehicles mainstream viable than anything else, and in future it's likely to be a massive source of revenue and growth.
10-21-21, 08:01 PM
#12
Lexus Fanatic
iTrader: (20)
ok folks, this thread is about earnings, not rehashing and celebrating every aspect of tesla's history and future. thanks.
10-22-21, 03:33 PM
#14
Lexus Fanatic
Thread Starter
Don't know if it is because of the financials or other factors like short sellers have run out of steam, TSLA hit $909 that is the highest ever.
10-22-21, 04:08 PM
#15
