Tesla continued its profitability streak, reporting Wednesday net income of $1.62 billion in the third quarter, a nearly fivefold increase from the $331 million it earned in the same period last year. The record-setting profit came thanks to record sales and despite a global chip shortage and supply chain constraints that has affected the industry.
Notably, Tesla was able to earn the $1.62 billion (GAAP) even as the vast majority of its sales came from its cheaper Model Y and Model 3 electric vehicles.
Tesla reported that operating income was $2 billion, which increased year over year from $809 million. Operating income also grew 54% from the $1.3 billion reported in the second quarter.
Tesla generated $13.75 billion in revenue in the third quarter, a 56% increase from the $8.77 billion it reported the same period last year. Revenue was also 15% higher than $11.96 billion reported in the second quarter of 2021.
The results beat analysts expectations. Analysts surveyed by Yahoo Finance expected revenue of $13.62 billion. Analysts surveyed by Factset forecast revenue of $13.6 billion and a profit of $1.3 billion.
The positive results follow record deliveries of its Model 3 and Model Y vehicles in the third quarter. The automaker said it delivered 241,300 electric vehicles in the third quarter, blowing past expectations as other U.S. automakers experienced a drop in sales as the result of a global chip shortage.
The vast majority of Tesla deliveries (some 96%) were its newer Model 3 sedan and Model Y crossover. Only 9,275 of the vehicles it delivered were Model X and S. Deliveries grew 20% since the second quarter and were 73% higher than the same period last year.
Production numbers also grew. Tesla produced 237,823 electric vehicles in the third quarter, another record for the company.