Tesla reported incredible quarterly earnings on Wednesday evening. This was due to the soaring prices of their electric vehicles as they faced production challenges caused by the Covid lockdown across China.
Tesla’s chief financial officer, Zachary Kirkorn, stated that the company’s goal is to increase deliveries by 50% this year. Although this seemed difficult, he insisted that it could still be achieved if they pressed hard enough.
Elon Musk predicted that inflation would decrease by the end of 2022. In addition, he predicted that the prices of most basic commodities would stabilize.
Elon Musk stated on the phone that Tesla has no shortage of demand, but is struggling with production.
Musk claimed that the harm of consumers’ interest in Tesla products is due to the global economic situation. Evidence of this can be seen in the rise in car prices to what he described as “critical levels” in the words of “Reuters” and “TopNews4U”.
In March of 2021, the price of the Model (Y) was more than 30% higher than its original price. to $65,990 in the United States.
Although Tesla shares are up 1%, they are down 40% from their peak in November.
A record monthly production rate was maintained at the China Tesla plant through the end of the second quarter.
In June, the Berlin plant produced 1,000 cars per week. That’s the point, Elon Musk said, of the new facilities in Berlin and Texas. Musk also noted that 5,000 cars per week could be produced at the Berlin and Texas plants by the end of the year.
After Tesla announced its earnings, Morgan Stanley analysts cited new Berlin production as a cause for concern in their report. Their words suggest the path could be tough for Tesla.
Tesla executives claim older generation chips are still hard to come by, but say this hasn’t significantly affected their ability to produce batteries and electronic components.
Electric vehicle maker Tesla Inc reported adjusted earnings per share of $2.27 for the second quarter, compared to analyst estimates of $1.81. That’s significantly lower than the previous quarter, when Tesla reported $3.22 in earnings.
Inflation lowered the automotive gross profit margin to 27.9% from the prior year and prior quarter.
Tesla broke a streak of high revenue by earning $18.76 billion in the first quarter and $18.76 billion in the second quarter. Instead, they earned $16.93 billion in the second quarter and ended the streak.
Refinitiv estimates revenue of $17 billion, according to IBES data. In addition, many believe that this will be achieved by analysts.