The American giant Tesla, Inc. has stated profit rise, despite factors like semiconductor chip shortfall & ports blockage hindering the production. The firm said it supplied a record 200K vehicles to people. The sale surged from $6 billion last year to $12 billion in 3 months, when its American factory shut down.
On Monday, Tesla, in an update to investors, added, "We continue our hard work to reduce the cost & rise production rate to make electric vehicles (EVs) accessible to many as possible." The firm added that public support & sentiment for EVs seems to be at a fresh inflection point & its production throughout the year will depend on the supply of car's vital parts with demand at record levels.
Semiconductor Chip Shortfall
Mr. Musk stated the shortfall of chips remains serious & making would swivel on this slowest supply chain part. Tesla will look to begin production at its novel Berlin gigafactory soon. The production has been tormented by delays, although the firm says it is the most futuristic high-volume EV manufacturing plant globally.
Other carmakers such as General Motors & Ford have been demanded to temporarily suspend manufacturing in few American industries. During the second quarter, Tesla's profits were also reduced by Bitcoin investments. But the firm has stopped taking Bitcoin as a payment mode earlier this 2021 as Mr. Musk's concerns about Bitcoin mining impact the environment.
On Monday, Tesla reported a loss of $23 million on its digital currency investment, although its chief executive said it might consider its acceptance in the future. However, Wedbush analysts - Dan Ives said, overall, the results underlined the firm's step in the right direction, with fine growth seen in China, where Tesla started production in 2020.
Mr. Ives added that the biggest question for investors will be when the firm would hit profitability, excluding the cash flow it receives from reselling to other car manufacturers the credits it gets for exceeding fuel & emission standards. A year before, $428 million in revenues were generated via the sale of such credits to $354 million between April & June end this year.
Image Source: Screenshot taken from Tesla