Status: 07/21/2022 01:44
Corona lockdowns in China, material shortages, chaos in global supply chains: electric car company Tesla has had to deal with many problems in the last quarter. Despite this, the company continues to make a lot of money.
Despite pandemic-related production disruptions in China and ongoing supply chain issues, Tesla nearly doubled its profit in the second quarter. The electric car maker posted a net profit of $2.3 billion, up 98% from the same period last year.
This was announced by Elon Musk’s group after the US stock market closed. In the prior quarter, however, the result was still significantly higher at $3.3 billion. Analysts, however, expected significantly lower earnings.
Problems in new factories
Tesla shares gained about 4% in after-hours trading. The automaker increased sales 42% year-on-year to $16.9 billion. However, measured against the first quarter of 2022, this still means a decline. At that time, sales were $18.76 billion.
It ended a streak of record sales as Tesla had to temporarily close its Shanghai factory due to a lockdown. There were also production problems at the new factories in Texas and at Grünheide near Berlin. Both factories are currently losing “billions,” Tesla boss Musk said in June.
The group confirms its annual objectives
At the time, he cited a lack of batteries and supply chain issues due to the situation at Chinese ports as reasons. Tesla has raised the prices of its vehicles several times this year. Among other things, this should offset the higher costs of lithium, which is used in batteries, and aluminum.
Despite the recent difficulties, the group confirmed its ambitious annual objectives and announced a “record” second half.
The majority of bitcoin holdings sold
Tesla also provided some surprising news about its bitcoin holdings: the company had sold about 75% of it by the end of the quarter, which increased the balance sheet cash balance by $936 million in the last quarter. Tesla had invested around $1.5 billion in the digital currency in 2021, but sold some of it later.