Tesla faced increasing transportation costs paired with “raw material cost inflation,” continued component shortages, and a strengthening dollar, all of which which ate into its quarterly revenue ($21.45 billion vs $21.96 billion expected), but still managed to set production records at each of its factories. According to the company’s quarterly production report published at the start of the month, Tesla built 365,923 vehicles in Q3 but delivered just 343,830.
Still, revenue from automotive sales reached $18.69 billion this past quarter, a 55 percent increase year-over-year. Values in Tesla stock have dropped more than 17 percent since that report’s publication, CNBC reports, and have fallen more than 5 percent since the close of market Wednesday when Tesla’s earnings were released. Despite these most recent losses, Tesla did see its profits double over the past year to $3.29 billion and “it looks like we’ll have an epic end of year,” CEO Elon Musk said during the investor call.
Tesla had previously targeted a 50 percent annual vehicle sales growth over the next few years. In 2021, Tesla delivered some 936,000 vehicles and has delivered delivered 908,573 vehicle to date in 2022. So in order to meet the 50 percent growth goal, the company will need to sell roughly 1.4 million vehicles in total this year with 490,000 of those coming in Q4. Tesla also recommitted to beginning deliveries of its Semi starting in December.
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