Science

Tesla: Better-than-expected earnings despite logistical challenges and restrictions in China

By comparison, the Elon Musk group’s performance is nearly double that of Q2 2021.

Tesla reported higher-than-expected profit in the second quarter, marked by severe Chinese production restrictions and supply issues, as well as rising prices for its electric vehicles. Elon Musk’s group, which is also mired in a lawsuit over the takeover of Twitter, netted $2.3 billion during the period, almost double the amount it made in the second quarter of last year.

But for the first time since the start of 2021, its profits have not skyrocketed to a new record high. Its turnover was also a little disappointing – $16.9 billion. Tesla has already indicated that its shipments fell 18% from the previous quarter, in part due to the closure of its Shanghai plant for several weeks, when the company delivered a total of 254,695 vehicles between April and June.

Rising car prices

The manufacturer also has to balance the semiconductor shortage, which has affected the entire automotive sector since the beginning of 2021, and rising raw material prices. To deal with this small air pocket, Elon Musk announced in June that he was laying off 3 to 3.5% of his workforce.

However, the group simultaneously increased the prices of their vehicles, with the cheapest model currently on sale in the United States at $48,840. This did not prevent the gross margin of automotive operations, especially the observed figure, from declining slightly to 26.2%.

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