Tesla reported a solid quarter with net income of $1.6bn, up 4.9x YoY and total revenues of $13.8bn, up 57% YoY. Tesla also reported record operating margins of 14.6% saying that they “continue to reduce cost at a higher rate than declines in ASP (Average Selling Price)”. Automotive gross margins (excluding regulatory credits) also expanded to reach 28.8% in Q3 vs. 25.8% in Q2. Regulatory credit sales accounted for $279mn in 3Q2021 vs. $397mn in 3Q2020. Tesla also booked a bitcoin-related impairment of $51mn in Q3, a second straight quarterly impairment from the cryptocurrency after a $101mn benefit in Q1. Tesla said that its “cash and cash equivalents decreased to $16.1bn in Q3, driven mainly by net debt and finance lease repayments of $1.5bn, partially offset by free cash flow of $1.3bn”.

Tesla’s Q3 vehicle deliveries (Model S/X and Model 3/Y) stood at 241,391, up 73% YoY with YTD deliveries at 627,572, well above the ~500,000 deliveries Tesla posted in all of 2020. Deliveries are a key metric at Tesla as a signal of electric-vehicle demand, as per Yahoo Finance. “A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed”, Tesla said.

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