Tesla (TSLA) sets several records in Q3 2021 earnings report

Tesla has once again set several records with the release of the their (TSLA) Q3 2021 earnings report this afternoon.

If counting is still a thing, this is the ninth consecutive profitable quarter for the automaker.

As noted in their report, they were able to set records for net income, operating profit, and gross profit.

The third quarter of 2021 was a record quarter in many respects. We achieved our best-ever net income, operating profit and gross profit. Additionally, we reached an operating margin of 14.6%, exceeding our medium-term guidance of “operating margin in low-teens”.

Perhaps one of the most important figures from the report is the 30.5% GAAP Automotive gross margin (28.8% excluding credits).

Perhaps more impressively, this level of profitability was achieved while our ASP2 decreased by 6% YoY in Q3 due to continued mix shift towards lower-priced vehicles. Our operating margin reached an all-time high as we continue to reduce cost at a higher rate than declines in ASP.

Here are the key figures from today’s earnings report:


Tesla shareholders saw earnings of $1.44 cents per share versus estimates of $1.58 and $1.79 per share.


Tesla reported total revenue of $13.757 billion, growing 57% year-over-year (YoY), versus estimates of $13.7-13.9 billion.

Regulatory Credits

Tesla reported $279M in regulatory credit revenue, down 30% YoY. This is particularly important because Tesla was yet again able to post a profit even without taking regulatory credits into account.

Other news

Giga Texas & 4680 cells

Tesla confirms in the report that Giga Texas has started manufacturing front and rear castings for the Model Y structural battery pack. In addition, the company said 4680 cell production at its Kato Rd facility “continues to progress” and testing of the cells is meeting their expectations.

A photo of Model Y quality control at Giga Texas was also released.

Giga Texas Model Y

Standard Range Cars and LFP Batteries

Tesla confirmed in the report they are shifting to lithium iron phosphate (LFP) battery packs for all their standard range vehicles. According to Tesla this change will impact vehicles “globally”, which is in contrast to what Tesla said last week about LFP cars in Canada.

Shares of Tesla (TSLA) have dropped less than 1% in after-hours trading following the release of the report.

TSLA Oct 20

Keep checking back for update as we unpack the report…

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