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| Tesla sales climb but miss expectations | Tesla sales climb but miss expectations |
| (4 months 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 $21.45bn (£19.12bn), it remained more than 50% higher than a year ago. | But at $21.45bn (£19.12bn), 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. | Mr Musk conceded there was weakness in China but beat back suggestions that demand was cooling. |
| Elon Musk wades into China and Taiwan tensions | Elon Musk wades into China and Taiwan tensions |
| Musk sells Tesla shares as Twitter lawsuit looms | Musk sells Tesla shares as Twitter lawsuit looms |
| 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. | 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. | "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. |
| The share price has dropped 40% this year, wiping billions of dollars off the company's value. Its shares fell a further 4% in after-market trading on Wednesday. | The share price has dropped 40% this year, wiping billions of dollars off the company's value. Its shares fell a further 4% in after-market trading on Wednesday. |
| "I think Tesla's had a hard quarter and the market is responding to that," Sarah Kunst, managing director of Cleo Capital, told the BBC's Today programme. | "I think Tesla's had a hard quarter and the market is responding to that," Sarah Kunst, managing director of Cleo Capital, told the BBC's Today programme. |
| "The auto industry in general right now is having a very hard time because supply chain problems persist and the batteries - particularly for electric vehicles - are hard to come by," she said. | "The auto industry in general right now is having a very hard time because supply chain problems persist and the batteries - particularly for electric vehicles - are hard to come by," she said. |
| "And the reality is that Tesla used to be the only place to go to buy a higher-end electric car and that's increasingly not the case." | "And the reality is that Tesla used to be the only place to go to buy a higher-end electric car and that's increasingly not the case." |
| 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. |
| It also explains why Mr Musk looked to kibosh talk of demand issues on the earnings call. "I can't emphasise enough we have excellent demand for [the fourth quarter] and we expect to sell every car we can make as far in the future as we can see," he said. | It also explains why Mr Musk looked to kibosh talk of demand issues on the earnings call. "I can't emphasise enough we have excellent demand for [the fourth quarter] and we expect to sell every car we can make as far in the future as we can see," he said. |
| However, 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. | However, 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. |
| Related Topics | |
| Companies | |
| Elon Musk | |
| Tesla | |
| Driverless cars | |
| Electric cars |