Tesla’s quarterly profit has exceeded a billion dollars for the first time as the electric car maker continued to surge beyond results of previous years.
The manufacturer has successfully navigated shortages of semiconductors so far, but hinted in its Q2 2021 report released last night (Jul 26) that it couldn’t guarantee this would continue.
The EV company earned $1.1bn (£800m), or 1.02 dollars per share, in the April-to-June or quarter-two period.
Profit was more than 10 times the same as last year, while revenue was up to around $12bn (£8.6bn), growing by 98 per cent year on year.
Tesla was already the most valuable car company in the world, and its market value is now $630bn (£455bn), putting it at 14 times what the company was worth two years ago.
In recent months, Tesla has successfully continued production of its vehicles while other manufacturers have struggled with semiconductor chip shortages.
It delivered more than 206,000 vehicles in the three-month period – more than it has ever produced since it was formed less than 20 years ago in 2003.
The company was plagued with problems only a few years ago and many questioned its long-term viability. It was making financial losses, while being plagued with production issues.
However, it’s become clear that the Californian company won’t completely avoid the semiconductor problem. It revealed it will delay its Semi truck until sometime next year.
It warned that the unavailability of parts will mean it may not be able to keep its current pace with production, and revealed that it was working on its own solution to the semiconductor shortage.
There is now a question mark over whether it will hit its production aims of 800,000 vehicles this year – far in excess of last year’s 510,000.