Tesla’s profits beat expectations in the third quarter of this year and posted a net income of $1.62 billion.
Tesla’s stellar profits came despite a shortage of semiconductors and supply chain challenges that have stymied rival automakers.
For the second time, the company’s quarterly profit exceeds $1 billion.
It should be noted that in the third quarter of last year, net income was $331 million.
The record results were driven by an improvement in gross margins of 30.5% on the auto business and 26.6% overall, both of which are record highs in at least the past five quarters.
Sales at the electric car and clean energy company, founded by Elon Musk, rose 57% to $13.8 billion, beating estimates of $13.9 billion.
Tesla said earnings were $1.86 per share on an adjusted basis. That beat analysts’ average estimate of $1.67.
The results represented the ninth consecutive quarter of profits, and came despite hurdles that included supply chain problems and even power outages that made it difficult to keep factories running at full capacity.
“A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed,” the company said in a statement to shareholders.
In contrast, Tesla shares fell less than 1% in extended market trading. However, it recorded a growth of 23% this year, after the stock closed at $865.80.
The company’s gross profit margin, a key measure of profitability, expanded to 28.8% last quarter, when regulatory credits were excluded.
Tesla delivered 241,300 vehicles worldwide in the third quarter, a record for the company. Tesla currently makes Models S, X, 3 and Y at its factory in Fremont, California, and Models 3 and Y at its factory in Shanghai.
The 3 and Y models accounted for more than 96% of sales during the quarter.
Tesla said revenue from regulatory funds was $279 million, down from $354 million three months ago.