Tesla's tumultuous third quarter saw earnings rise but sales fall

Tesla’s tumultuous third quarter saw earnings rise but sales fall

In Q3, Tesla encountered rising transportation expenses, “raw material cost inflation,” component shortages, and a stronger currency, all of which reduced its quarterly revenue ($21.45 billion vs. $21.96 billion projected). Nonetheless, the EV carmaker achieved production records at each of its plants. Tesla constructed 365,923 cars in Q3 and delivered just 343,830, according to the company’s quarterly production report released at the beginning of the month.

This quarter, revenue from automobile sales reached $18.69 billion, a 55 percent rise year on year, helping the firm regain some momentum lost during the weaker second quarter. According to CNBC, the value of Tesla shares has declined more than 17 percent since the publishing of that story and has lost more than 5 percent since the closing of the market on Wednesday, when Tesla’s results were disclosed. Andrej Karpathy, Tesla’s Director of AI, also left the firm in Q3 after a half-decade leading the company’s ADAS research.