Tesla Q3 2021 Earnings Report Recap

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Tesla (TSLA) Financial Results: Analysis

Tesla, Inc. (TSLA) reported mixed Q3 FY 2021 earnings results. Adjusted earnings per share (EPS) beat expectations, rising 144.7%% year over year (YOY). Revenue missed analyst forecasts but rose 56.8% YOY to a new quarterly record. Tesla also reported record profits for the quarter. Tesla's vehicle deliveries for the quarter, which it reported earlier this month, came in at 241,300. The company's shares fell less than 1% in after-hours trading. Over the past year, Tesla's shares have provided a total return of 105.2%, well above the S&P 500's total return of 31.8%.

TSLA Vehicle Deliveries

Tesla's vehicle deliveries rose 73.2% YOY, which was the primary driver of the company's revenue growth for the quarter. Tesla's primary business is making electric vehicles, and it needs to continue expanding production in order to grow revenue and profits. The electric vehicle maker noted that its ability to keep its factories running at top speed has been affected by a number of supply-chain challenges, including semiconductor shortages, port congestions, and rolling blackouts.

Tesla expects to achieve 50% average annual growth in vehicle deliveries over a multi-year horizon. However, it faces an increasingly competitive electric vehicle market with Volkswagen AG (VOW3) becoming the top-selling all-electric vehicle maker in Europe last year. Through the first half of 2021, Tesla was the global leader in the market for plug-in electric vehicles with a market share of nearly 14.6%. Volkswagen was second with a market share of 12.5%, and General Motors Company (GM) was third with a market share of nearly 8.6%.

Tesla's next earnings report (for Q4 FY 2021) is estimated to be released on Jan. 25, 2022.