Tesla doubles quarterly profits despite pandemic
Unhindered by a pandemic that has ravaged the global economy, Tesla has doubled its third-quarter profits as it nears record annual deliveries. But the electric carmaker still depends on the sale of CO2 emission offsets.
US electric carmaker Tesla has more than doubled its third-quarter profits, the company has announced, delivering a record number of electric automobiles amid a pandemic that has crippled fellow automakers.
In a letter to investors, the company said it delivered 139,300 vehicles in the third quarter, a new quarterly record. It aims to have produced and delivered 500,000 cars by the end of the year.
Net profits in the third quarter reached $331 million (€280 million), more than twice the $143 million posted at the same time a year earlier. Revenue went up nearly 40% to $8.7 billion, exceeding analysts’ expectations.
The value of Tesla shares — which have increased fivefold since the beginning of the year — were up 4.3% to $440.81 in extended trading, news agency Reuters reported.
This marks the fifth straight quarter of profits for the company. As of September, Tesla reported making $451 million in 2020 and seems on course to post its first annual profit.
CO2 offset sales still key
An uptick in demand abroad countered a drop in US car sales of nearly 10% over the last year; global deliveries increased 44% in the third quarter.
But Tesla still partly owes its success to competitor carmakers: as in past quarters, the electric car company’s profits relied on the sale of CO2 credits to fellow carmakers, which allow them to offset their emissions and reach government climate targets. Valuing $331 million in the third quarter, Tesla would not have been profitable otherwise.
CO2 offset sales still key
An uptick in demand abroad countered a drop in US car sales of nearly 10% over the last year; global deliveries increased 44% in the third quarter.
But Tesla still partly owes its success to competitor carmakers: as in past quarters, the electric car company’s profits relied on the sale of CO2 credits to fellow carmakers, which allow them to offset their emissions and reach government climate targets. Valuing $331 million in the third quarter, Tesla would not have been profitable otherwise.
Source: dw.com