American electric carmaker Tesla achieved its best-ever net income and profit in the third quarter of this year, according to a statement.
Tesla’s net income jumped 389% year-on-year to $1.62 billion in July-September this year, the statement said on Wednesday.
The company recorded $13.8 billion in total revenues, up 57% in the same period. This owed to the growth in vehicle deliveries and other parts of the business, it noted.
The gross profit of the company soared 77% on an annual basis to $3.7 billion in the third quarter.
Planning to expand its manufacturing capacity as quickly as possible, the company said “over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries,” depending on equipment capacity, operational efficiency as well as the capacity and stability of the supply chain.
Tesla safety concerns
The US highway safety watchdog has pushed Tesla for details about its driver-assistance systems, specifically whether it has barred some people testing the features from reporting possible safety concerns.
As part of a preliminary probe opened after a series of accidents with emergency vehicles, the regulator on Tuesday ordered Elon Musk’s electric car company to provide information about confidentiality agreements with drivers who have been testing a new feature since October 2020.
#Tesla shows record profit in Q3 as investors seek perfection. Results mark 9th straight quarter of profit for 18y-old EV comp. Automotive gross margin, key gauge of profitability, widened to 28.8% in Q3 when regulatory credits are excluded, a fresh ATH. https://t.co/D57t5zLxcx pic.twitter.com/cquJpk0vio
— Holger Zschaepitz (@Schuldensuehner) October 20, 2021
The feature, called Full Self-Driving (FSD), is designed to allow the cars to detect stop signs and turn at intersections, while the existing Autopilot function is mainly used to manage speed and keep the vehicle in a lane.
The National Highway Traffic and Safety Administration (NHTSA) cited reports saying the confidentiality agreements “allegedly limit the participants from sharing information about FSD that portrays the feature negatively.”
The agency relies in part on driver-reported feedback to assess potential safety defects.
“Any agreement that may prevent or dissuade participants in the early access beta release program from reporting safety concerns to NHTSA is unacceptable,” the agency wrote in a letter to Tesla, setting a November 1 deadline for the company to respond.
Anadolu with additional input by GVS News Desk