Tesla posts record revenue in third quarter but warns of pressure on margins

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Earnings growth faces headwinds from supply-chain disruptions and the time required to ramp up output at new factories in Berlin and Texas

Tesla said on Wednesday its new factories and supply-chain headwinds would put pressure on its margins after it beat Wall Street expectations for third-quarter revenue thanks to record deliveries.

“There’s quite an execution journey ahead of us,” CFO Zachary Kirkhorn said, referring to the new factories. Tesla shares, which have gained about 23% this year, were down about 0.6% in extended trade late on Wednesday. Tesla’s automotive gross margin, excluding environmental credits, rose to 28.8%, from 25.8% the previous quarter. Its overall average price fell as it sold more lower-priced Model 3 and Model Y cars, but it raised prices in the US.

 

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