Record-Breaking Car sales drive Tesla Profit Gush
By Kashaf
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Tesla reported record profits despite a shortage of semiconductor chips and congestion at ports that hampered production.
The company’s sales grew to $12bn (PS8.6bn), an increase of $6bn in the year before the closure of its US factory.
According to the electric carmaker, it shipped a record number of cars to customers during that period.
The report also indicated that the public supported greener cars more than ever before.
Elon Musk, a billionaire entrepreneur, reported Monday that the company’s profits rose due to strong sales.
The Model 3 sedan was cheaper than the Model Y, and the profit for the third quarter of the year was $1.1bn.
Investors receive an update Tesla stated Monday that “public sentiment and support for electric cars seems to be at an unprecedented inflexion point.”
“We are working hard to reduce costs and increase production to make electric cars accessible to as many people as possible.”
Tesla stated that Tesla’s ability to produce cars in the remaining months of the year would depend upon the availability of critical components for its vehicles. Demand is at “record levels”.
Chip shortage
Musk spoke on Monday to financial analysts and said that electric vehicles were the only way forward.
Musk stated during the call that the global shortage of chip chips “remains very serious” and that manufacturing would depend on the “slowest portion of the supply chain”.
He also spoke out about late-night phone calls to suppliers to solve shortages.
According to the company’s results, Tesla cars are experiencing longer waiting times, particularly in Europe.
It plans to begin production at the new Berlin “Gigafactory”, as soon as possible. Delays have marred it. Although it is not listed as the “most advanced high-volume electric vehicle manufacturing plant in the world”,
In the meantime, it will increase the production of its cars at California’s hub.
According to reports, Mr Musk also visited Luton Rumours circulated earlier this year that he might be thinking about opening a Tesla factory in the UK.
Other car giants, such as Ford or General Motors, were forced to temporarily suspend production in US factories after being affected by the global shortages of semiconductors.
However, profits at Tesla were also affected by investments in cryptocurrency Bitcoin.
It had previously invested heavily in digital currency. It stopped accepting Bitcoin payments earlier in the year due to Mr Musk’s concerns over the environmental impact of Bitcoin mining which consumes enormous amounts of electricity.
The company reported a loss of $23 million on its Bitcoin investments Monday. However, its chief executive recently indicated that it might accept it again in the future.
Elon Musk “rather hates” being Tesla boss
Dan Ives, a Wedbush analyst, said that the figure was “much lower” than most people had feared.
He said that the results were a “step forward” in the company’s direction, with healthy growth also being seen in China, where Tesla started manufacturing last year.
However, Mr Ives pointed out that investors are still unsure when the company will be able to reach profitability, excluding the income it receives from reselling credits it earns for exceeding fuel and emissions standards to other carmakers.
It saw $354m in revenue from the sale of credit between April and June, a decrease of $428m over the same period last year.
Reference: bbc.com
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