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Record profits for Elon Musk’s Tesla

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Elon Musk’s Tesla, the electric car maker has seen record sales and profits in the past quarters. Revenues rose to $13.76bn in the third quarter of this year which was as low as $8.77bn in the last 12 months. 

The company which is under the proprietorship of the multi-billionaire Elon Musk, reported a total profit of $1.6bn after having sold a gigantic number of cars. The number of cars sold ranges somewhere around 241,391.

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In their report, Tesla said ‘We achieved our best-ever net income, operating profit and gross profit.’ 

The firm has said that the nation of China continues to remain its primary exporting hub. The manufacturer is looking at creating a different type of battery for the standard vehicles it produces worldwide. New lithium iron phosphate batteries that are likely to replace traditional batteries are expected to be cheaper. However, they will offer a lower range. The main reason for this shift according to analysts is to help keep costs down and address the rising issue of part shortages. 

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Elon Musk’s Tesla, like the rest of the world, is facing shortages in computer chips known as semiconductors. It is an essential part that goes into making millions of products including but not limited to cars, mobiles and washing machines. 

Victoria Scholar, who happens to head the investment at Interactive Investor, said that Tesla’s numbers have beat any analysts’ expectations. ‘This is an impressive set of numbers in the context of the ongoing global chip shortage headwind’. 

Tesla said that the demand for electric vehicles (EV) has to go through a structural shift. Talking of its immense boom, the firm went on to add ‘We believe the more vehicles we have on the road, the more Tesla owners are able to spread the word about the benefits of EVs’. 

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The majority of Tesla’s revenue has shown a trend of coming from the sale of its models priced lower like Model 3 and Model Y cars. They have shown a rise of about 87%. With no looking back, Tesla now hopes to grow and increase its manufacturing capacity, at the earliest. It also expects to see a 50% rise in car sales annually.

Talking of their aim of rapid progress, the firm said ‘The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain.’ 

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