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27 Jul, 2021 09:53

Tesla makes $1 billion profit in record quarter despite parts shortages and drop in bitcoin assets value

Tesla makes $1 billion profit in record quarter despite parts shortages and drop in bitcoin assets value

Elon Musk’s electric car maker Tesla has nearly doubled its profits in the second quarter of 2021, making $1 billion in quarterly net income for the first time.

The company reported $1.14 billion in profits for the second quarter, a tenfold increase compared to the same period last year, when it earned $104 million.

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Tesla’s overall revenue stands at $10.21 billion, with gross margins at 28.4%, the highest in the last four quarters.

Tesla had previously reported record deliveries of 201,250 electric vehicles during the period, which was slightly short of the company’s expectations but more than it has ever sold in a single quarter. 

Public sentiment and support for electric vehicles seems to be at a never-before-seen inflection point,” the company wrote in a letter to investors.

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On the down side, Tesla said it lost $23 million due to the value of its bitcoin assets. The company also continues to face parts shortages, especially semiconductors and microcontroller chips, which also affected other carmakers such as General Motors and Ford. A shortage in battery cells forced Tesla to delay the launch of its pickup truck program until 2022.

During a shareholder call on Monday, CEO Musk said many customers ask why the company doesn’t produce its own parts to prevent shortages. He laughed it off, saying, “it’s not like you can just whip up a chip [factory].” Musk noted, however, that Tesla is working with suppliers to address the current shortages.

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