Tesla hopes for a record six months after corona shock absorbers in China

AUSTIN Tesla was slowed down in the last quarter by corona blockades in China and supply chain problems. However, the electric car pioneer expects to return to a record course in the second half of the year. The ambitious goal of delivering around 50 percent more cars than in 2021 remains. Demand for Tesla vehicles is uninterrupted, stressed the head of the company Elon Musk.

Tesla beat analysts’ earnings expectations in the second quarter. Among other things, thanks to strong price increases, the electric car manufacturer earned $ 2.3 billion, up 98 percent. more than a year ago. However, in the first quarter of this year, the figure was still well above $ 3.3 billion.

Tesla increased sales 42 percent year-on-year to $ 16.9 billion. At the same time, Tesla delivered to customers only 254,695 vehicles in the second quarter, compared to 310,048 vehicles in the first quarter – the first decrease from the previous quarter in about two years. A 50 percent increase in sales this year has become more difficult, but it is still achievable if done properly, said chief financial officer Zach Kirkhorn during a conference call with analysts on Wednesday. Tesla does not currently see a weakening in demand due to high inflation and a slowing economy.

Because the company assumes a “record” second half of the year. Tesla explained that Tesla’s large U.S. automobile plant in Fremont and Shanghai – where recent crown lock failures have occurred in China – recorded the highest monthly production rates to date.

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The European factory in Grünheide near Berlin is also gradually opening up. Here, 1,000 Model Y vehicles rolled off the assembly line in just one week, which Tesla described as an “important milestone”. In May, Musk complained about problems with increasing production at Grünheide and at the new US plant in Austin, and described the sites as “giant money incinerators” in an interview.

Tesla shares rose by a good one percent at the start of pre-market trading on Thursday. In a preliminary data analysis, car expert Ferdinand Dudenhöffer referred not only to the price increase, but also to the development cost savings program. “With the successful development of new factories and the elimination of the current start-up weaknesses (Grünheide, Austin), Tesla is a very profitable car manufacturer,” he concluded.

Musk also called prices “embarrassingly high” and pointed to inflation and commodity costs as triggers. He hopes that Tesla will be able to “lower” them a bit over time.

Tesla fared much better than other car makers due to parts shortages, including chips, during the corona pandemic. Musk has been going through a ‘supply chain hell’ of sorts for years.

Tesla provided surprising information on its investment in Bitcoin: according to its annual report, the company sold about 75 percent of them at the end of the quarter, which increased the cash balance on its balance sheet by $ 936 million in the last quarter. In 2021, Tesla invested around $ 1.5 billion in the oldest and most famous digital currency, which caused a stir at the time. Soon after, the part was sold again. Like the crypto asset market as a whole, Bitcoin’s price has plummeted in the last quarter.

Musk described the sale of Bitcoin at a conference with analysts and investors as a response to the plight in Shanghai. “It was important for us to maximize our cash position given the uncertainty surrounding the Covid blockades in China,” he said. The sale took place because Tesla management was not sure how long the situation would last. In April, a mandatory notification to the US Securities and Exchange Commission stated that Tesla believed in the long-term potential of digital systems – both as an investment and as a liquid alternative to cash. The recent sale should not be seen as a kind of “judgment” on Bitcoin, Musk stressed.

Tesla’s lucrative trade in pollution rights that other car makers need to improve their carbon footprint no longer played so much of a role. In the first quarter, the e-car pioneer earned over $ 679 million, in the past only $ 344 million. Although Tesla has raised prices several times this year, the automotive industry’s profit margin has dropped to 27.9 percent. In the previous quarter it was still 32.9%, a year ago it was 28.4%.

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