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Tesla’s second-quarter profit increased due to price increase

Tesla Wednesday reported a rise in quarterly profit as a string of gains in best-selling vehicles helped offset production challenges, sending the company’s shares up 4% in extended trading.

“With each plant in Fremont and Shanghai achieving their highest ever production months and new plant growth, we are focused on the record second half of 2022,” Tesla said.

Tesla said it converted about 75% of its bitcoin purchases into fiat currency, adding $936 million in cash to its balance sheet.

The company has raised the price of its cars several times this year to cope with the higher cost of lithium used in the battery and aluminum is used for the body, along with other raw materials.

Managing director Elon Musk However, Tesla said it will cut prices when inflation cools.

Total revenue fell to $16.93 billion in the second quarter from $18.76 billion a year earlier, ending a streak of record sales in recent quarters, as it struggled to meet demand. Electric Car due to plant shutdowns in Shanghai and production challenges at new factories.

According to IBES data from Refinitiv, analysts expect revenue of $17.10 billion.

Net income was $2.26 billion for the most recent quarter, or $1.95 per share, compared with $1.14 billion, or $1.02 per share, a year earlier. .

Tesla is bracing for a potential recession and increasing competition from rivals. It also faced challenges of boosting production significantly in the second half of the year, after Of China Lockdown affects the production of the company and its suppliers.

Musk also said Tesla’s new factories in Texas and Berlin are having a hard time ramping up production, calling them “huge smelters” that are losing billions of dollars.

Musk said he had an “extremely bad feeling about the economy” in June and started getting fired.

(Reporting by Hyunioo Jin in San Francisco and Nivedita Balu in Bengaluru Editing by Anil D’Silva, Peter Henderson and Matthew Lewis)

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