Yahoo Finance Tesla second-quarter profits top $1bn even as it struggles to handle demand
Tesla made a profit of more than $1bn in the last three months even as it struggled to keep up with demand for electric cars in the face of a global chip shortage.
The company announced Monday that it has made a profit of $1.14bn in its second quarter, 10 times what it made a year ago and its eighth quarter of back-to-back profits.
Tesla has already reported deliveries of 201,250 electric vehicles, and production of 206,421 total vehicles, during the quarter ending 30 June.
Car manufacturers across the world have struggled to keep up with demand amid a shortfall of semiconductors.
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“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” said Elon Musk, Tesla’s chief executive, in June. “Fear of running out is causing every company to over-order – like the toilet-paper shortage, but at epic scale.”
The company has pivoted to using other suppliers and the shortage has not dampened enthusiasm for its vehicles, especially Tesla’s Model Y compact sport-utility vehicle, the most popular all-electric vehicle in the US.
“Public sentiment and support for electric vehicles seems to be at a never-before-seen inflection point,” the company said in a statement.
The company’s shares rose more than 2% in after hours trading.
