The best of EcoWatch, right in your inbox. Sign up for our email newsletter!
Tesla Doubles Quarterly Profits Amid Pandemic
By Kristie Pladson
U.S. electric carmaker Tesla has more than doubled its third-quarter profits, the company has announced, delivering a record number of electric automobiles amid a pandemic that has crippled fellow automakers.
In a letter to investors, the company said it delivered 139,300 vehicles in the third quarter, a new quarterly record. It aims to have produced and delivered 500,000 cars by the end of the year.
Net profits in the third quarter reached $331 million, more than twice the $143 million posted at the same time a year earlier. Revenue went up nearly 40% to $8.7 billion, exceeding analysts' expectations.
The value of Tesla shares — which have increased fivefold since the beginning of the year — were up 4.3% to $440.81 in extended trading, news agency Reuters reported.
This marks the fifth straight quarter of profits for the company. As of September, Tesla reported making $451 million in 2020 and seems on course to post its first annual profit.
CO2 Offset Sales Still Key
An uptick in demand abroad countered a drop in US car sales of nearly 10% over the last year; global deliveries increased 44% in the third quarter.
But Tesla still partly owes its success to competitor carmakers: as in past quarters, the electric car company's profits relied on the sale of CO2 credits to fellow carmakers, which allow them to offset their emissions and reach government climate targets. Valuing $331 million in the third quarter, Tesla would not have been profitable otherwise.
Competition Heats Up
While traditional automakers are suffering in a global economy marked by a pandemic, Tesla is no longer alone in its electric ambitions.
"The company is still incredibly highly rated, as if it were working in a vacuum. But the competitors are working like mad to catch up," said analyst Craig Irwin of Roth Capital Partners, pointing to hundreds of new battery-powered vehicles that are expected to be released by 2024.
Volkswagen group is investing over €40 billion ($47 billion) into developing an electric car portfolio, and other competitors have announced similar initiatives.
"With more electric vehicle launches on the horizon, Tesla has a big red target on its back," said Jessica Caldwell, executive director of insights for the Edmunds.com auto website.
In its letter, Tesla admitted that reaching its production targets "has become more difficult" and it will rely on of its Model Y small SUV as well as greater activity at its China plant.
Reposted with permission from Deutsche Welle.
EcoWatch Daily Newsletter
By Robin Scher
Beyond the questions surrounding the availability, effectiveness and safety of a vaccine, the COVID-19 pandemic has led us to question where our food is coming from and whether we will have enough.
- Can Urban Farms Prevent Hunger in 54 Million People in the U.S. ... ›
- New Report Finds Malnutrition World's Top Killer Amid Pandemic ... ›
- Oxfam Warns 12,000 Could Die Per Day From Hunger Due to ... ›
- Three Ways to Support a Healthy Food System During the COVID ... ›
- Trump USDA Resumes Effort to Cut Food Stamp Benefits - EcoWatch ›
- Pandemic Threatens Food Security for Many College Students ... ›
Tearing through the crowded streets of Philadelphia, an electric car and a gas-powered car sought to win a heated race. One that mimicked how cars are actually used. The cars had to stop at stoplights, wait for pedestrians to cross the street, and swerve in and out of the hundreds of horse-drawn buggies. That's right, horse-drawn buggies. Because this race took place in 1908. It wanted to settle once and for all which car was the superior urban vehicle. Although the gas-powered car was more powerful, the electric car was more versatile. As the cars passed over the finish line, the defeat was stunning. The 1908 Studebaker electric car won by 10 minutes. If in 1908, the electric car was clearly the better form of transportation, why don't we drive them now? Today, I'm going to answer that question by diving into the history of electric cars and what I discovered may surprise you.
As bitcoin's fortunes and prominence rise, so do concerns about its environmental impact.
- 15 Top Conservation Issues of 2021 Include Big Threats, Potential ... ›
- How Blockchain Could Boost Clean Energy - EcoWatch ›
By David Drake and Jeffrey York
The Research Brief is a short take about interesting academic work.
The Big Idea
People often point to plunging natural gas prices as the reason U.S. coal-fired power plants have been shutting down at a faster pace in recent years. However, new research shows two other forces had a much larger effect: federal regulation and a well-funded activist campaign that launched in 2011 with the goal of ending coal power.
- Major Milestone: More than 100,000 MW Worth of Coal-Fired Power ... ›
- Coal Will Not Bring Appalachia Back to Life, But Tech and ... ›
- Renewables Beat Coal in the U.S. for the First Time This April ... ›