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Tesla reported over $1 billion in net profits for the second quarter, beating analyst expectations for its financial performance along with record production and delivery numbers.
The second-quarter net profit figure compares with $438 million booked for the first quarter.
Revenues hit $11.96 billion in the second quarter, up from $10.39 billion in the first quarter.
The company acknowledged the supply chain challenges—notably semiconductor shortages—as still present in the second quarter, pointing out that “With global vehicle demand at record levels, component supply will have a strong influence on the rate of our delivery growth for the rest of this year.”
Tesla also said that EV demand was at an inflection point never seen before and that it was working to make EVs affordable for more people.
In the second quarter, the company delivered 201,250 cars and produced 206,241 cars, it said in an earlier update. This compared with 184,800 cars delivered in the first quarter and 180,338 cars produced.
Sales of electric cars have been on a strong rise since last year. In some markets, last year’s EV sales rose faster than sales of internal combustion engine vehicles. This year’s first half has also seen strong EV sales despite continuing setbacks such as the semiconductor shortage and raw material cost increases.
Yet with sales increasing, so is the number of choices of electric vehicles, and Tesla is facing a growing number of rival models from major carmakers. In total, the industry is spending some $330 billion on more EVs over the next five years.
These investments are already paying off. In May and June, according to the latest data, electric cars accounted for over 3 percent of all car sales, which was the highest portion ever recorded. However, doubts remain about the strength of future uptake due to persistent challenges such as insufficient charging point numbers and range anxiety.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com