Tesla Q3 profit more than quadruples to US$1.6b

A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York, US, April 29, 2016. — Reuters pic
A Tesla logo on a Model S is photographed inside of a Tesla dealership in New York, US, April 29, 2016. — Reuters pic

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NEW YORK, Oct 21 — Tesla’s third-quarter profits more than quadrupled on sharply higher sales despite a global semiconductor shortage that has plagued the auto industry, according to results released Wednesday.

Elon Musk’s electric car company posted a record profit of US$1.6 billion (RM6.6 billion)for the three-month period as revenues surged 57 per cent to US$13.8 billion compared to the year-ago period. 

Tesla also delivered a record 241,391 vehicles during the period, with sales significantly ramping up in North America and China.

The results suggest Tesla’s output has been less affected by the global shortage of semiconductors than some rival carmakers that have shuttered factories or cut production.

However, the company said chip shortages as well as congestion at ports and rolling blackouts “have been impacting our ability to keep factories running at full speed.”

“We believe our supply chain, engineering and production teams have been dealing with these global challenges with ingenuity, agility and flexibility that is unparalleled in the automotive industry,” Tesla said in its news release.

The electric carmaker said new factories in Germany and the state of Texas remain on track, and it is expanding new “full self driving” technology to more drivers based on “demonstrated driver safety.” 

But earlier this month, US highways safety regulators demanded details from Tesla on issues with the new  autonomous system, building on a previously announced probe.

Tesla shares dipped 0.4 per cent to US$862.67 in after-hours trading. — AFP

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