Even in the face of a global shortage of semiconductor chips for the auto industry and a delivery delays because of congestion at ports hitting its production, a surge in profits for the latest completed quarter was reported by the United States based electric car maker Tesla.
For the three months to the end of June, the company reported sale rise to $12bn compared to $6bn in the same quarter a year ago when it had to shut down its factory in the United States.
In the latest completed quarter, a record 200,000 cars were delivered to customers, said the electric car maker. The company added that there was higher than ever demand for greener cars because of popular public support.
Profits at the company soared on the back of strong sales, said the company, led by billionaire entrepreneur Elon Musk, on Monday.
Higher sales of its cheaper Model 3 sedan and Model Y helped the company to report second quarter profits of $1.1bn compared to $104m for the same quarter last year.
“Public sentiment and support for electric vehicles seems to be at a never-before-seen inflection point. We continue to work hard to drive down costs and increase our rate of production to make electric vehicles accessible to as many people as possible,” Tesla said in an update to investors on Monday.
With demand for its cars at “record levels”, the supply of key parts of its vehicles will decide the pace at which it could produce cars throughout the rest of the year, Tesla added.
“At this point, I think everyone can agree, electric vehicles are the only way forward,” Musk said on a call with financial analysts on Monday.
The global chip shortage “remains quite serious” and the speed of manufacturing would critically depend on this “slowest part of the supply chain”, Musk said during the call.
The late night calls he had with suppliers for solving supply side issues were also described by Musk.
The company said in its results that the supply side issues resulted in growing waiting times for Tesla cars, particularly for customers across Europe.
The company also said that it is attempting to begin production at its new Berlin “gigafactory” as soon as possible. Beginning of the work at the factory has been plagued by delays even though the company says that it as “the most advanced high-volume electric vehicle production plant in the world”.
The company also said that manufacturing of its cars at its California hub would be revamped in the meantime.
The global shortage of semiconductors has forced temporary suspension of production at other car giants such as Ford and General Motors at their factories in the United States.
Other items such as investments in the cryptocurrency bitcoin also dented profits at Tesla in the second quarter.
(Adapted from BBC.com)