Hey this is tom, and in this video we're going to be looking at the tesla q3 financials and i got ta be honest with you. I expected a lot and i feel i got it and some my name is tom nash and i quit my corporate job as a senior financial analyst to break down companies for you there's one thing you need to know about me: i don't take from anybody now In my videos, as you know, the bottom line comes first, because i respect your time and if that's the only thing you need i'm going to start with a two minute recap of the main highlights now after we get done with that, we can move on to The actual analysis, but you don't have to stay for that. If the only thing you need is just the highlights, you can stay for the next two minutes and you can leave. I honestly don't feel bad about it.

It's all gucci, don't worry about it before we start as always. Don't click nothing, don't smash, nothing don't buy nothing. I honestly don't care some people think it's a trick. It's a stick.

I honestly don't care. I just want you to listen, because i want to teach you so i don't care about clicking some buttons or buying some courses just check it out. So, let's start with the highlights first, so q3 tesla now i just circled this number. 280 million.

280 million. Is the lowest regulatory credits we had in two years, as the hate is predicted, the regulatory credits are coming down, but unlike their predictions, if you can call them predictions, as you can see here, the gross margin - it's not general motors. The gross margin is at 30 and a half percent this quarter, it's an all-time high, so the gross margin is above 30 percent all-time high. And if you remove regulatory credits, the gross margin is still 29, which is an all-time high, not only x credits, but even if you take this 28.8 x, credit meaning without credit gross margin, is the all-time high, including credits forever.

This is pretty much insane, so, even if you remove the credits, the remaining gross margin is still the highest in tesla's history, so the debate about tesla, actually losing regulatory credits was correct. However, the result was not, as you can see it's doing better than ever, but wait we have more. So i prepared some more information for you. So revenues are 13.8 billion all-time high.

Now 57 year-over-year growth, 15 quarter of a quarter growth, and in this section we basically see that the whole busted growth story is basically nonsense. Google, i mean almost 14 billion in their revenues: massive growth, almost 60 year-over-year and 15 quarter of a quarter which is in line with the latest quarters. Basically, this proves us that this company has so much potential. We honestly don't know where it's going to go because we're talking about a crisis, gear chip shortages, anybody and not to mention all the stuff that tesla went through this year: inflation, china issues, everything still these guys have grown by this much now.

This basically proves that gordon johnson is a busted johnson story, not really tesla, being a busted ghost story, but then again i mean i never believed this guy in the beginning with but hey it is what it is. Looking at just a divider - and this number here - 3.2 billion 23.3 margin all time, high 77 year-over-year growth. Now you really can't have that kind of growth. We just saw the general manager, i'm just kidding the gross margin.

We just saw the numbers we're seeing the ebitda ebitda grown 77, so it means the company is becoming more efficient. It's ramping up, it's becoming more efficient and the whole story about them losing ground. Basically, losing money is just nonsense, as you can see they're making plenty of money now you're going to see some impressive stuff here in the second, so this is the operating margin. Now the operating margins for those of you are not familiar with this.

This is basically the no-nonsense number now. A gross margin just tells us how efficient the production is. Operating margin is basically tells us how efficient the company is, because it doesn't include all the nonsense. Google, that happens in the accounting later post below the line below the operating margin.

This is basically how much money the company is making from selling cars as simple as that so 14.6 margin, 14.6 all-time high and you're getting tired of hearing this, but every single category we have an all-time high. This quarter, 11, less quarter, so tesla increased by three point: six percent, its operating margin in a single quarter, while struggling with supply chain issues, a sharp, basically a crisis of chips. Right. Anybody still remembers that and all the issues in china, everybody remembers that still increased.

So somehow they became more profitable, more efficient in the time of crisis, which is kind of unthinkable as far as what's going to happen next, when we actually move out of this crisis and move into happy happy times so earnings per share, of course, they beat wall Street expectations - and here just want to highlight something, really interesting, so they beat like they always do. Here's the most interesting part, though, so the expectations were 1.69. They had 186.. The most interesting part here is that these numbers are already skewed.

So when you look at these, you have to understand that the wall street expectations are really skewed upwards because of the level expectations tesla generates, so the 1.69 was already very high and they still beat that so it's kind of a double whammy, if you want now As far as cash - and this is really interesting - so some may critique this because they lost 200 million in cash, so somebody say well tom: they just lost from 16.2 to 16 billion. Sorry in cash. That's really bad uh, not really mother lover, because they're building a bunch of factories and they're ramping up production and we're in the supply chain issues here, chip shortage. Remember so all that's happening.

The company is ramping up and they only lost 200 million in cash still sitting on 16 billion in cash. So i honestly can't see how this would be a bad thing. This is really interesting. Super charging network uh they're, now at 3200 stations, which is a 50 year-over-year growth.

Now this is a really interesting piece of data because it just widens the lead the tesla already has, quite simply because this is why i believe a lot of people actually buy teslas. I know a lot of people think engineering right, it's true software. It's true, i think the supercharging network, where you eliminate fears of charging it's a huge selling point and the lead is just getting wider and wider. Imagine what will happen to the cash flow when they actually open it up to everybody else, and it's going to be insane so we spoke about it.

The growth of this is just basically creates a negative incentive for anybody else to try and build something like this. So they'll rent it from tesla and blah blah blah blah blah blah. All the we usually say. Moving on this is the clownery section, busted the busted growth story.

Thank you, gordon johnson, so i want to say really honestly thank gordon, because what just happened here is that, for the past year, he's been preaching and tesla keeping the prices low, because certain people have definitely listened to him and all of us got cheaper stock. Thank you gordon appreciate it. However, i think if you listen to gordon johnson this year last year and pretty much recently you're pretty much screwed, so i would take it up with gordon. I think now, let's move on to the actual factors.

Let's look at the financials themselves now i spoke earlier before about the automotive revenues: 12 billion. It's a huge increase 13 and a half all-time high, even without regulatory credits, 28.8 all-time high. We spoke about this but check this out. Look at operating expenses.

I didn't speak about this earlier, so the operating expenses went up from 1.2 to 1.6 billion, 400 million increase in operating expenses, with an increase of revenues of almost five billion dollars. If you tell me right now that any company can give me five billion more in revenues, with just 400 million more in operating expenses, it's a kick-ass company which is exactly what they did. It proves to me. They know what they're doing.

This is probably one of the most important metrics nobody's talking about now: look at their operating margin: 9.2. 5.4. 5.7. 11.

15. Look at the trend line from these past few quarters from 5, 5 11 14.6 they're killing it. The operating margin is insane now adjusted. Ebay is the same 77 growth in adjusted, ebitda, 23.3 percent 3.2 billion.

Look. They made 1.8 billion last year, 3.2 billion in just one year, 77 increase. That is insane look at the model. 3 production.

They went up from 128 000 right here: 128. 000 in q3, 2020, all the way up to 228 000 80 increase in a single year, yeah sure there's a demand problem. I can feel it the hell. Are you talking about look at this chart which again will not get enough attention? This is tesla's market share.

In europe, china and canada, as you can see, it's going up so the whole narrative about market share in china going down europe going down. Look the numbers, don't lie, it's almost a straight-line demand. Look at vehicle deliveries, look ignore the numbers. 80.

000. To hundred forty thousand three x in just two years, give or take q2 2020, not even two years, not even two years look. This is insane look at the trend line. Look at the free cash flow boom.

Last three quarters. Look at the adjusted ebitda. Look! Look at it just a little bit in the past three quarters boom. Everything is going up.

How can you think this company is actually doing bad what's wrong with these people, but look at the balance sheet right. Total assets 57.8 eliminate 2 billion of goodwill. So, let's say 55 with the 29 total liabilities, almost 2x assets versus liabilities, and they started the year with 8 billion of debt right now, they're at 2 billion of that they repaid 6 out of 8 billion of debt through this entire time. This is exactly what you do in inflationary times.

You reduce your debt, because cost of capital becomes expensive smart by the way. Look at this nobody's talking about this motorway production in berlin and austin. This hasn't even kicked in yet imagine the potential here.