Being a leader does not only mean selling more cars, the important thing is the profit margin left by each unit sold. Tesla records an impressive profit margin for each sale during the third quarter of the year.
The automotive industry is changing, and not just in its approach to mobility. The annual and quarterly balance sheets of the companies make it very clear that profit margins have increased considerably in recent years. Even though production and sales are down, companies are earning more than ever as they make more profit on each car sold. If we talk about industry leaders, no one is capable of reaching the data that Tesla has achieved during the past quarter. The profit for each car is astronomical.
A few weeks ago Tesla presented the comprehensive results report for the third quarter of the year. In broad strokes, the report describes an increase in the volume of deliveries. Between July and September, the American manufacturer registered a total of 343,830 cars worldwide, which is the best quarterly record in its history. The good data also extended to the financial balance with an income from the sale of cars of $17.785 billion. Forbes has taken all the data and has extracted a very relevant value.
Financial experts have analyzed in detail the figures achieved in Tesla’s best quarter in its entire history. The third quarter of the year has been marked by a notable increase in production and raw material costs, in addition to a rise in inflation rates around the world. Despite the dramatic situation, the company’s coffers saw total revenues of $21.45 billion, about 3.3 billion in net terms. That represents 55% more than in the same period of the previous year.
If we talk about income, we must also talk about expenses, which are not a few. The production of the cars had a cost of $13.099 billion (production costs, raw materials, and others). To this must be added the expenses generated by the leasing, which have been recorded at $381 million. The numbers come out at Tesla, and if we take all the revenue and subtract the expenses to extrapolate it to each unit sold during the past quarter, the result is even more impressive.
With car sales posting a positive revenue of $17.785 billion, and a total of 343,830 cars having been delivered worldwide, the division posts a pre-tax profit of $51,726 per car. It is a figure that could even grow during the last part of the year since the usual push of deliveries is expected before the end of the course. There is currently no other manufacturer in the industry that is capable of offering such profit margins, and it seems unlikely that there will be any time soon.
Despite the positive quarterly result, Forbes makes it very clear that Tesla has to face ever-increasing competition and environmental problems that do not seem to have a quick solution. Materials, raw materials, and some components will continue to be scarce and more expensive for some time, putting the bottom line at risk. Recession is arguably the biggest risk of all, though Musk has claimed that Tesla is resilient to any recession. Still, that remains to be determined.