San Francisco (The Hawk): Elon Musk's company Tesla announced $3.3 billion in net profits for the third quarter (Q3), more than doubling from the same period last year, while its automotive revenue increased by 55%.
The electric carmaker stated in a letter to shareholders late Wednesday that the third quarter was another strong quarter, with record revenue, operating profit, and free cash flow.
"In the recent year, our free cash flow surpassed $8.9 billion. In Q3, our operating margin was 17.2 percent "According to a business release.
Tesla's automotive revenue was $18.69 billion, up 55% from the previous year.
"We remain committed to boosting vehicle production as rapidly as feasible by raising our weekly build rate in Fremont and Shanghai and steadily working through the production ramps in Berlin and Texas," the company added.
Musk hinted at a probable share buyback during an earnings call.
"I can't emphasise enough that we have tremendous demand for Q4 and intend to sell every car we build for the foreseeable future. The facilities are running at full capacity, and we are delivering every car we produce while maintaining healthy operating margins "He informed analysts.
Musk suggested that Tesla may conduct a "major repurchase" next year, potentially worth $5 billion to $10 billion.
"I believe we can significantly outperform Apple's present market cap. In fact, I believe Tesla has the potential to be valued more than Apple and Saudi Aramco combined. That doesn't guarantee it will happen or be simple "He took note.
According to the corporation, logistics unpredictability and supply chain bottlenecks remain immediate challenges, albeit they are improving.
"We continue to expect that battery supply chain bottlenecks will be the primary impediment to long-term EV market growth. Despite these obstacles, we intend to deliver every vehicle produced while maintaining good operating margins "The electric vehicle manufacturer stated in a statement.
(Inputs from Agencies)