Earnings Report highlights for TESLA Q3/2021

These are some highlights from $Tesla Motors(TSLA)$ Q3 2021 earnings report:

<PLUS> are positive developments

<WATCH> are potential areas of concerns

Notable highlights:

1. Operating margin 14.6% despite the Average Selling Price (ASP) of vehicles drop by 6% YoY in Q3 on top of record vehicle production and deliveries. This is due to vehicle volume increase and costs reduction.
2. Challenges that affected the margin: semi conductor shortages, congestion at ports and rolling blackouts - thus, the factories could not operate at “full capacity”
3. <PLUS> FSD City Streets rolled out in Q3 - this is based on the safety score of the drivers (good). Tesla’s Autopilot is 8x better than the US average for millions of miles between collision.
4. Operating margin grew from 9.2% in Q3/2020 to 14.6% in Q3/2021 and the EPS (GAAP) increased from $0.27 in Q3/2020 to $1.44 in Q3/2021
5. <PLUS> repayment of $1.5B for net debt and finance lease > debt reduction
6. Vehicle production and deliveries are growing
7. <WATCH> Solar deployed (MW) dipped to 83 comapred to 85 in Q2/2021 but still up from 58 in Q3/2020
8. Storage deployed (MWh) improved to 1295 compared to 759 in Q3/2020
9. Vehicle deliveries improved 73% YoY and the supercharger stations/connectors increased by 49% & 51% respectively.
10. (TTM) Market Share of Tesla is about 1 to 2% for US/Canada, EU & China
11. 4680 batteries are undergoing testing
12. Updated vehicle Software/APP in Q3/2021
13. New MegaPack factory - capacity from 3GWh to 40GWh > more production can be expected.
14. <PLUS> Tesla service and insurance - Telematics insurance > accurate assessment of drivers > matched with correct insurance and also Tesla proactively communicate what driving adjustments to be made to reduce collision
15. <PLUS> Target to increase vehicle deliveries by 50% annually.
16. <PLUS> GigaFactory Berlin and Texas expect to start production by end of 2021 and to ramp up production over 2022. CyberTruck is expected to be built in Texas.
17. <WATCH> item that kept losing money since Q3/2020 is "Services and other"
18. <PLUS> Net income per share of common stock (Basic) has improved from $0.32 (Q3/2020) to $1.62 (Q3/2021) - this is over 5x improvement
19. Personally, I will prefer for Current assets (especially cash and liquid assets) can be more than current liability but there is sufficient liquidity for the operations.
20. Free Cash Flow stands at $16.694B at the end of Q3/2021 remains strong and adequate.

Other notes (yahoo finance):

Diluted EPS (TTM) has grown to 3.07 from 1.92 (TTM ending in June 2021) and P/E ratio has dropped from 354.01 (30Jun21) to 296.22 (22Oct201). This means that the earnings is faster than the price increase.

The above is an example of I would go over the earnings report. however, it is important for us to see the trend of the company by quarters and also by years to see a longer time frame development of the company. Let us do our diligence before we invest.

@Tiger Stars