- The stock price of Tesla Inc (NASDAQ: TSLA) increased by 3.26% today, going from a previous close of $865.80 to $894. This is why it happened.
The stock price of Tesla Inc (NASDAQ: TSLA) increased by 3.26% today, going from a previous close of $865.80 to $894. Investors are responding positively to the company reporting record operating profits for the second consecutive quarter.
Tesla CFO Zachary Kirkhorn said that “folks want to buy an electric car and folks want to buy a Tesla right now… It is very exciting for us.”
The company’s earnings per share were $1.86. And revenue was $13.76 billion. Both of these figures were well above expectations.
And Tesla reported $1.62 billion in GAAP net income for the quarter. This is the second time that Tesla topped $1 billion.
The automotive revenue increased to $12.06 billion and the costs of automotive revenue were $8.38 billion for the quarter. Plus Tesla generated $806 million in revenue from the energy business — which includes solar and energy storage operations.
And Tesla hit $894 million in services and other revenue like vehicle maintenance and repairs along with auto insurance and other Tesla-branded merchandise. For the third quarter, Tesla recorded a $51 million impairment related to an investment in Bitcoin.
In Tesla’s earnings materials, the company also revealed it is shifting to Lithium Iron Phosphate (LFP) battery chemistry globally. Tesla previously used lithium-ion battery cells with a nickel cathode for vehicles with the standard range designed for customers in North America. LFP batteries are usually more affordable to produce since iron is more accessible than raw materials used in lithium-ion batteries. The main producers of these battery cells are CATL and BYD in China.
Tesla’s senior vice president of powertrain and energy engineering Drew Baglino said that the goal of the company is to localize the production of cars and batteries as much as possible to the continents where they make cars. And this extends to battery cells as well.
Interestingly, Tesla CEO Elon Musk decided not to participate on the earnings call today.
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