Tesla doubles net profit to $3.3 billion in Q3, auto sales up 55%

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Tesla, led by Elon Musk, reported third-quarter (Q3) net income of $3.3 billion, more than double from a year ago, and its auto revenue jumped 55% from compared to the same period last year.

In a letter to shareholders, the electric car maker said Wednesday night that the third quarter was another strong quarter with record revenue, operating profit and free cash flow.

“Over the past 12 months, our free cash flow exceeded $8.9 billion. Our operating margin reached 17.2% in the third quarter,” the company said in a statement.

Tesla’s auto revenue was $18.69 billion, a 55% increase from a year ago.

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

During an earnings call, Musk hinted at a potential stock buyback.

“I can’t stress enough that we have excellent demand for the fourth quarter and we plan to sell every car we make as far as we can see. The factories are running at full capacity and we are delivering every car we make. make and maintain strong operating margins,” he told analysts.

Tesla could make a “meaningful buyout” next year, potentially between $5 billion and $10 billion, Musk said.

“I believe we can far exceed Apple’s current market capitalization. In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined. That doesn’t mean it will happen or that it will be easy. ,” he noted.

The company said logistics volatility and supply chain bottlenecks remain immediate challenges, though they are improving.

“We continue to believe that battery supply chain constraints will be the primary limiting factor to electric vehicle market growth over the medium to long term. Despite these challenges, we plan to continue to deliver every vehicle produced while maintaining strong operating margins,” the electric car said. -maker said in the statement.

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