Energy Market & Energy Statistics

Aenert news. Energy Companies
The production of electric vehicles is an important part of the development of consumer applications of renewable energy and a key indicator of the state of the energy transition to a community with minimal consumption of fossil fuels. The quarterly financial and operating reports of companies involved in the production of electric vehicles provide some basic information about this, which, of course, are not exhaustive, but are at least mandatory for any assessment.
We traditionally selected three public companies from different regions and with different weights in this sector of the economy to partially take into account the results of activity in the electric vehicle market based on the results of the third quarter of 2023. One of them is the global industry leader, the American Tesla; the second is China's Li Auto, which is one of the top 10 local manufacturers; and the Swedish Polestar, which is gradually increasing its presence in the market.
At the same time, Tesla remains the personification and main brand of the industry, despite serious competition from Chinese companies. Li Auto represents a segment of companies that have left the targeted development stage and have begun large-scale supply of their hybrid electric vehicles to the domestic and foreign markets. Polestar is still focused on creating and improving its consumer line of electric vehicles and optimizing its production base.
The current time period is full of numerous challenges for any industrial production, especially for the automotive industry. This is due to various financial and technological problems, including disruption of supply chains, worsening credit conditions, and changes in consumer capabilities.
However, in the coming years, this industry may face even more serious barriers, primarily of a resource nature. In addition to the growing problems with providing manufacturers with lithium and cobalt, the problem with the supply of graphite, which is the only anode material for lithium-ion batteries, is becoming increasingly threatening.
At least today, it is clear that the expected growth in electric vehicle production cannot be achieved at the current rate of production of natural or synthetic graphite. The situation is further aggravated by the fact that about 70% of anodic graphite production volumes are concentrated in China, and also by the fact that the level of technology for its production is far from the desired environmental requirements. In our upcoming review, we will analyze this issue in detail, including a list of practical measures aimed at redressing this imbalance.

Tesla

In the third quarter of 2023 (2023 Q3), Tesla produced 430 thousand electric vehicles, which is 18% more year-on-year, but 10% less than the previous quarter. This resulted in a quarterly decrease in Total automotive revenues from $21,268 million to $19,625 million.
Net income according to GAAP amounted to $1.853 billion (Y-to-Y decrease by 44%). Operating margin amounted to 7.6% versus 17.2% a year earlier and 9.6% in 2023 Q2

Tesla Company. Revenue, net income and share price



Source: Tesla

The company's quarterly results statement stated the following: “A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call. Our 2023 volume target of around 1.8 million vehicles remains unchanged”.

The stock market reacted to these indicators rather restrainedly. The price of the company's shares at the end of the quarter was fixed at $250 per share.

Li Auto

In the third quarter of this year, Li auto confidently continued to increase its production and financial performance. During this period 105,108 units vehicle were delivered to the market compared to 86,533 in the previous quarter. Vehicle sales were RMB33.62 billion, representing an increase of 271.6% in the third quarter of 2022 and an increase of 20.2% in the second quarter of 2023.

Vehicle margin was 21.2% compared with 12.0% in 2022 Q2 and 21.0% in 2023 Q2. Total revenues were RMB34.68 billion, representing an increase of 271.2% compared with 2022 Q3 and an increase of 21.0% in 2023 Q2. Net income was RMB2.81 billion ($385.5 million), compared with RMB1.65 billion net loss in the third quarter of 2022 and representing an increase of 21.8% from RMB2.31 billion net income in the second quarter of 2023.

Li Auto Inc. Revenue, net income and share price



Source: Li Auto Inc.

Despite the successful production and financial indicators, the value of the company's shares remained virtually unchanged in the third quarter.



Li Auto: L7. JustAnotherCarDesigner. CC BY-SA 4.0

Polestar

The Swedish car brand Polestar, backed by Volvo and Geely, plans to complete the creation of an environmentally neutral production car by 2030. At the beginning of November of this year, the company presented its flagship model of the next few years in the United States - Polestar 5.
Main characteristics of this electric vehicle:

- acceleration to 100 km in less than three seconds;
- all-aluminum body;
- power 650 kW;
- travel length on one charge up to 480 km.



Polestar Precept. Aenert photos. Credit I.Ciorici

The company has not yet managed to get out of the loss zone for the fourth quarter in a row. However, in the third quarter of this year Revenue increased by USD 177.7 million, or 41% compared to the same period last year.

Polestar. Revenue, net income and share price



Source: Polestar

Gross profit decreased USD 0.5 million, or 11%; selling, general and administrative expenses increased USD 57.6 million, or 32%; research and development expenses increased USD 30.3 million, or 123%. Operating and adjusted operating loss increased by USD 64.8 million, or 33%.

By the Editorial Board