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| Tesla sales climb but miss expectations | Tesla sales climb but miss expectations |
| (30 minutes later) | |
| Supply shortages, logistics bottlenecks and rising costs are hitting Tesla as it rapidly ramps up production of its electric cars. | Supply shortages, logistics bottlenecks and rising costs are hitting Tesla as it rapidly ramps up production of its electric cars. |
| While the problems have improved in recent months, they remain immediate challenges, Tesla said in a financial update for investors. | While the problems have improved in recent months, they remain immediate challenges, Tesla said in a financial update for investors. |
| Revenue was lower than expected in the three months ending in September, as car sales fell short of expectations. | Revenue was lower than expected in the three months ending in September, as car sales fell short of expectations. |
| But at almost $21.5bn, it remained more than 50% higher than a year ago. | But at almost $21.5bn, it remained more than 50% higher than a year ago. |
| Tesla, led by billionaire Elon Musk, has been growing aggressively in recent years, opening new factories in the US, China and Germany and boosting output. | Tesla, led by billionaire Elon Musk, has been growing aggressively in recent years, opening new factories in the US, China and Germany and boosting output. |
| The company delivered 343,000 cars in the quarter - a record that was up more than 40% from the same period last year. | The company delivered 343,000 cars in the quarter - a record that was up more than 40% from the same period last year. |
| The firm produced more cars than were sold, raising fears that demand may be slowing, as rising prices, higher borrowing costs and a major economic slowdown in the key China market discourage buyers. | The firm produced more cars than were sold, raising fears that demand may be slowing, as rising prices, higher borrowing costs and a major economic slowdown in the key China market discourage buyers. |
| Mr Musk conceded there was weakness in China but beat back suggestions that demand was cooling. | |
| When Tesla shared the delivery figures earlier this month, the company said the gap was due to difficulty finding vehicles to transport cars to customers. | |
| "There weren't enough boats, there weren't enough trains there weren't enough car carriers," he said on a conference call to discuss the results, adding that the firm expects to sell every car it makes. | |
| Deliveries of its own much anticipated electric truck are due to start in December, the firm said. The company reported $3.3bn in profit, up significantly from a year ago. | Deliveries of its own much anticipated electric truck are due to start in December, the firm said. The company reported $3.3bn in profit, up significantly from a year ago. |
| But questions about Tesla's growth path, as well as billions of dollars in stock sales by Mr Musk as he prepares a $44bn takeover of Twitter, have weighed on the company's shares in recent months. | But questions about Tesla's growth path, as well as billions of dollars in stock sales by Mr Musk as he prepares a $44bn takeover of Twitter, have weighed on the company's shares in recent months. |
| Prices for the stock have dropped 40% this year, wiping billions of dollars off the company's value. | Prices for the stock have dropped 40% this year, wiping billions of dollars off the company's value. |
| Tesla dominates the electric vehicle market in the US, but it faces far more competition in Europe and China, where such cars are more popular. | Tesla dominates the electric vehicle market in the US, but it faces far more competition in Europe and China, where such cars are more popular. |
| In the US, rivals have also been ramping up their efforts. | In the US, rivals have also been ramping up their efforts. |
| German carmaker BMW said on Wednesday that it would spend $1.7bn to expand its electric vehicle production in the US. | German carmaker BMW said on Wednesday that it would spend $1.7bn to expand its electric vehicle production in the US. |
| A few months ago Elon Musk - no shrinking violet when it comes to self-promotion - said demand for Teslas was through the roof | A few months ago Elon Musk - no shrinking violet when it comes to self-promotion - said demand for Teslas was through the roof |
| "Right now demand is exceeding production to a ridiculous degree," he said. | "Right now demand is exceeding production to a ridiculous degree," he said. |
| And yet from these figures, that doesn't seem to be happening. | And yet from these figures, that doesn't seem to be happening. |
| In fact Tesla is making more cars than it's selling. | In fact Tesla is making more cars than it's selling. |
| Not only that, but there are a series of financial pressures eating away at profitability. Supply chain issues and the costs of raw materials are hurting profits. | Not only that, but there are a series of financial pressures eating away at profitability. Supply chain issues and the costs of raw materials are hurting profits. |
| Tesla investors are much more concerned about its long-term potential than short term financial pressures though. | Tesla investors are much more concerned about its long-term potential than short term financial pressures though. |
| That's why the uncertainty about demand for Teslas is particularly damaging. It helps to explain why a seemingly solid set of results has seen a fall in Tesla's share price. | That's why the uncertainty about demand for Teslas is particularly damaging. It helps to explain why a seemingly solid set of results has seen a fall in Tesla's share price. |
| Many Tesla investors worry that Mr Musk isn't spending enough time on the company - after committing to buy Twitter. These results won't likely change that view. | Many Tesla investors worry that Mr Musk isn't spending enough time on the company - after committing to buy Twitter. These results won't likely change that view. |