Tesla Q3 Earnings Highlights: Record Revenue, Operating Margin And Free Cash Flow, Tesla Semi Deliveries Coming In December

Electric vehicle leader Tesla Inc TSLA reported third-quarter financial results after market close Wednesday. Here are the key highlights.

What Happened: Tesla reported third quarter revenue of $21.45 billion, up 56% year-over-year. The total came in shy of analyst estimates of $21.96 billion, according to data from Benzinga Pro.

The company reported automotive revenue of $18.69 billion in the third quarter, up 55% year-over-year.

Tesla had adjusted earnings per share of $1.05 in the third quarter, beating a Street estimate of $1 per share.

In the third quarter, Tesla reported record revenue, free cash flow and operating profits despite what the company called “material headwinds.” The company also added its operating margin is industry leading at 17.2%.

Tesla produced 365,923 vehicles in the third quarter, up 54% year-over-year.

Third-quarter deliveries totaled 343,830, up 42% year-over-year.

All of Tesla’s factories had record vehicle production in the third quarter, according to the company.

The company had record storage deployment in the third quarter at 2,100 MWh, up 62% year-over-year.

Tesla ended the third quarter with 728 stores and service locations and 4,283 Supercharger stations with 38,883 connectors.

Tesla’s balance sheet showed $218 million in digital assets, in line with the figure reported in the second quarter. Tesla sold a portion of its Bitcoin BTC/USD earlier this year.

Related Link: How To Trade Tesla Stock Before And After Q3 Earnings 

What’s Next: Tesla plans to grow its manufacturing capabilities going forward.

“We remain focused on increasing vehicle production as quickly as possible by increasing our weekly build rate in Fremont and Shanghai and progressing steadily through the production ramps in Berlin and Texas,” the company said.

Tesla said battery supply chain constraints are the main limiting factor to electric vehicle market growth.

The company said its goal for its multiyear plan is to have average annual delivery growth of 50%.

The Tesla Semi is expected to begin deliveries in December 2022.

TSLA Price Action: Tesla shares are down 4% to $213.38 in after-hours trading Wednesday at the time of writing.

The Tesla Semi's interior. Courtesy photo.