Tesla’s run of success continued in the third quarter, setting new records for revenue, operating profit and free cash flow.
The EV maker appears to be enjoying strong results because as it sells more cars and crossovers, it appears to make even more money. The company reported net income of $3.3 billion for Q3 on revenue of $21.5 billion. Its operating margin is an industry leading 17.2%. On an adjusted basis, the company reported earnings of $5 billion, or a margin of 23.2 percent.
The positive results came despite “material headwinds” during the quarter.
“Raw material cost inflation impacted our profitability along with ramp inefficiencies from Gigafactory Berlin-Brandenburg, Gigafactory Texas and 460 cell production,” officials noted in a presentation to shareholders. “Also the U.S. Dollar continued to strengthen compared to all other major currencies in our markets.”
The company also resolved issues with delivering its vehicles to customers. Once discovering the process was eating into its bottom line, it transitioned to a “smoother delivery paces, leading to more vehicles in transit at the end of the quarter.” The company believes this will improve its cost per vehicle.
Tesla delivered 18,672 Model S and X vehicles during the quarter, an increase of 101% on a year-over-year basis. For its most popular Model 3 and Model Y vehicles, deliveries were up 42% to 325,158 vehicles.
TheDetroitBureau.com will add to this story after Tesla’s earnings call.