Tesla at Grows Profitabillity by 3% to 30%

Tesla reported third-quarter financial results and increased profitability by 3% to 30.5% automotive gross margin and 28.8% auto margin without tax credits.

Tesla will continue to grow the profitability as this was in a quarter where the Model X was not being produced and the Model S were still being ramped. The Model S and X high-end models sell for $139,000 and the lower end Model S sells for $89000.

The Model 3 and Y are in the $42,000 to 60,000 price range. The average selling price of Tesla this quarter was about $49500.

Tesla’s overall operating margin was up 3.6% from Q2 to Q3.

The Berlin and Austin factories should start producing cars next month.

Tesla auto revenue is up 58% from Q3 of last year. Total profit grew 77% compared to Q3 of last year.

Tesla is building a new Megapack factory. It will have 40 GWh per year of capacity. Tesla is increasing Megapack capacity by 8X.

A Megapack currently costs $1.3 million for a 3MWh megapack. 40GWh would be 13,000 3MWh Megapacks.
This would be $13 billion in revenue even with 30% price reduction.

Tesla has been growing but factories have still been constrained with supply chain issues. If all supply chain issues are solved then Tesla’s growth will be even faster.

Tesla expects 4680 batteries to start production early in 2022.

SOURCES – Tesla
Written by Brian Wang, Nextbigfuture.com (Brian owns shares of Tesla)