Tesla reports record earnings in third quarter; stock edges lower after hours

Tesla reports record earnings in third quarter; stock edges lower after hours

Tesla reports record earnings in third quarter; stock edges lower after hours

Tesla Inc. reported mixed quarterly earnings late Wednesday, saying that chip shortages and other supply-chain challenges kept its factories from running at full speed.

Tesla
TSLA,
+0.18%

said it earned $1.6 billion, or $1.44 a share, in the third quarter, compared with $331 million, or 27 cents a share, in the year-ago period. Adjusted for one-time items, the EV maker earned $1.86 a share.

Revenue rose 57% to $13.8 billion, from $8.8 billion a year ago.

Analysts polled by FactSet expected Tesla to report adjusted earnings of $1.62 a share on sales of $14 billion.

“A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts have been impacting our ability to keep factories running at full speed,” the company said in a statement. Shares of Tesla fell more than 1% in the extended session Wednesday, after ending the regular trading day up 0.2%.

Tesla Chief Executive Elon Musk surprised investors earlier this month by announcing Tesla was moving its headquarters to Austin, Texas, from Palo Alto, Calif., despite its intention to continue to expand its Fremont, Calif., factory.

Musk was speaking at the Tesla’s shareholder meeting, and he also updated investors about the timing of some of Tesla’s new vehicles and about the “constant struggle” to get enough chips and other auto parts.

Musk reiterated expectations that production of the Tesla Cybertruck, an all-electric pickup, will start next year and hit volume production by 2023.

Tesla’s commercial truck, the Semi, and the redesigned Roadster, a luxury sports car, also are expected in 2023, he said. Tesla and other companies are likely to be through the supply-chain shortages by 2023, Musk said.

Tesla stock has gained 23% so far this year, compared with gains of around 21% for the S&P 500 index
SPX,
+0.37%
.