[Asia Economy Reporter Ji-hwan Park] Eugene Investment & Securities stated on the 23rd that Tesla once again achieved a record quarterly performance in the third quarter and expects the strong performance streak to continue in the fourth quarter.
Tesla's revenue for the third quarter this year was $13.7 billion, a 56.8% increase compared to the same period last year. Operating profit surged 147.7% year-over-year to $2 billion. This exceeded market expectations by 24% based on operating profit. It marked a new record for the highest quarterly operating profit, surpassing the second quarter's record. As an automaker, this is an unusual margin rate, driven mainly by fixed cost reductions due to volume increases, expanded Model Y production at the Shanghai factory, and increased sales of Model S/X.
The outlook for Tesla in the fourth quarter is also positive. Tesla achieved an annual production capacity of 1 million units as of the third quarter. Typically, the fourth quarter is a peak season, and it is expected that production and sales will exceed 250,000 units plus alpha.
Ja-il Lee, a researcher at Eugene Investment & Securities, explained, "Tesla started exporting Model Y produced at the Shanghai factory to the European market in the third quarter and is producing the renewed Model S and X at the Fremont factory. Since the ASP of Model 3 sold in China is currently the lowest, there is potential for mix improvement." He added, "The Berlin factory is almost completed and plans to start production after obtaining approval within this year."
Tesla aims for a mid-to-long-term annual sales growth rate of 50%, and the growth rate next year, with the Berlin and Texas factories scheduled to operate, is expected to exceed this target. The researcher stated, "To improve margin rates, Tesla plans to replace the battery packs of all standard models with LFP. They also plan to introduce structured battery packs, 4680 battery cells, and single-piece casting, and with better-than-expected performance announcements, a positive stock price trend is expected to continue."
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