Elon Musk comments on road bumps, Tesla posts record profits

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For the first time since the end of 2019, Tesla’s profits do not depend on the sale of environmental credit to other car manufacturers, a sign of increased financial growth through manufacturing.

tesla
Elon Musk’s Tesla posted a profit of $1.45 per share. (File)


Tesla Inc posted a higher second-quarter profit than expected Tuesday due to higher sales of its less expensive cars, as it increased car prices and reduced costs.
Elon Musk, CEO of Tesla, said the global chip shortage that led to the temporary closure of car manufacturers was still critical, and did not provide details about the time of Cybertruck and future-generation batteries.

For the first time since the end of 2019, Tesla’s profits do not depend on the sale of environmental credit to other car manufacturers, a sign of increased financial growth through manufacturing.

The world’s most important automaker shares have risen by about 1% in increased trade.

In a phone call with investors and analysts, Tesla executives say growth in volume production this year will depend on the availability of shares, as it aims to increase delivery by more than 50%.

Musk said Tesla “has a lot of calls in the middle of the night, at 1 in the morning, with providers about resolving many shortages.”

While some people suggested that Tesla build his own chip fab, he pointed to a long lead. “That could take us, until we go like lightning, for 12 to 18 months,” he said.

However, Musk said Tesla expects to start limited production this year for the Model Y SUV at factories under construction in Texas and Germany.

Tesla said it has delayed the launch of the Semi truck system until 2022 to focus on starting factories and due to the limited availability of battery cells and other components this year.

Musk did not give time for Tesla to start mass-producing batteries for his new generation and the much-anticipated Cybertruck.

“It is difficult to say when this last technological challenge will be resolved,” he said, referring to its 4680 battery cells.

He said Tesla had a backup plan to use 2170 existing batteries, adding that its battery cell suppliers would double production next year.

The carmaker, led by a billionaire businessman, said revenues dropped to $ 11.96 billion from $ 6.04 billion last year, when its California factory closed for more than six weeks due to local anti-epidemic directives.

Analysts were expecting an estimated $ 11.3 billion in revenue, according to IBES data from Refinitiv.

Apart from that, Tesla posted a profit of $ 1.45 per share, easily setting analysts’ expectations at a profit of 98 cents per share.

Tesla said operating revenue had increased with volume growth and lower costs, which removed higher procurement costs, lower debt revenue and other factors including a $ 23 million loss in investment in cryptocurrency bitcoin.

Tesla’s profits often relied on selling regulatory debt to other car manufacturers, but in the second quarter, Tesla made a profit without these investments for the first time since the end of 2019. His GAAP revenue was $ 1.14 billion in the second quarter. Revenue from creditors reached only $ 354 million.

“Tesla is impressed with its numbers, as most of its revenue comes from car sales,” said Jesse Cohen, chief analyst at Investing.com.

Carmaker Stellantis expects to achieve its goals of emitting European carbon dioxide (CO2) this year without natural debt from Tesla.

On the other hand, Musk said “there is a good chance he will not make salary calls” to further discuss financial results with investors and analysts. These calls have been the trend of quarterly Musk using speeches on Tesla technology, or repelling rivals or critics.

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