Despite the supply chain crisis, Tesla still exceeds profit expectations
The electric car manufacturer, led by billionaire entrepreneur Elon Musk, said its quarterly revenue increased to $11.96 billion from $6.04 billion a year ago.
Electric car maker Tesla Inc. exceeded Wall Street’s profit and revenue expectations for the second quarter on Monday, as record deliveries offset the impact of chronic global chip and raw material shortages.
The share price of the world’s most valuable automaker rose 1.3% in after-hours trading.
The company said it expects to launch Model Y SUV production in Texas and Germany this year, but will postpone the launch of Semi until 2022. Nevertheless, despite the pandemic and supply chain crisis that have damaged the auto industry, Tesla has set a record high. Due to the sale of cheaper models, including Model 3 sedans and Model Y crossovers, deliveries decreased during the quarter.
The automaker, led by billionaire entrepreneur Elon Musk, said its revenue jumped from US$6.04 billion a year ago to US$11.96 billion when its U.S. factory was designed to curb the spread of the coronavirus. Was closed for more than six weeks due to the local blockade order.
According to Refinitiv’s IBES data, analysts had previously expected revenue of approximately $11.3 billion.
Excluding items, Tesla reported earnings per share of US$1.45, easily exceeding analysts’ earnings per share of 98 cents.
Tesla said that the main reason for the increase in operating income was sales growth and cost reductions, which offset the “additional supply chain costs and the decline in regulatory credit income” and other projects, including a loss of $23 million in cryptocurrency Bitcoin investment.
Tesla stated that “it is expected to build our first Model Y car in Berlin and Austin in 2021.” But it said it has postponed the launch of the semi-truck program until 2022, “to better focus on these factories, and due to the limited supply of battery cells and global supply chain challenges.”