Image: EV Wraps
Yesterday Tesla reported its Q3 2021 financial results, significantly exceeding expectations. A number of investment firms have responded quickly to this by raising their price targets.
Q3 2021 was a record quarter in many respects. Tesla achieved its best-ever net income, operating profit, and gross profit. Additionally, the company reached an operating margin of 14.6%, exceeding its medium-term guidance of “operating margin in low-teens.” The manufacturer said that this level of profitability was achieved while their ASP2 decreased by 6% YoY in Q3 due to a continued mix shift towards lower-priced vehicles. Tesla’s operating margin reached an all-time high as the company continues to reduce cost at a higher rate than declines in ASP.
Operating cash flow less capex (free cash flow) of $1.3B in Q3
Net debt and finance lease repayments of $1.5B in Q3
In total, $164M decrease in cash and cash equivalents in Q3 to $16.1B
$2.0B GAAP operating income; 14.6% operating margin in Q3
$1.6B GAAP net income; $2.1B non-GAAP net income (ex-SBC1) in Q3
30.5% GAAP Automotive gross margin (28.8% ex-credits) in Q3
These financial results have triggered a large wave of price target adjustments from investment firms. At the moment, there are nine of them and information about more continues to flow:
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