Tesla Sees Highest Profits Ever

Tesla saw its highest quarterly profit ever.

On Monday, the firm unveiled that it had made $12 billion in revenue and $1.1 billion in profit during the second quarter of 2021. The earnings vastly exceeded analysts’ expectations of $11.4 billion in revenue and $600 million in profit.

In the first quarter of 2021, Tesla had earned $438 million in profits.

The Wall Street Journal reported:

The Silicon Valley electric-car maker produced more than 206,000 vehicles in the second quarter, more than doubling its output from the year-ago quarter, when the rise of the Covid-19 pandemic limited production and consumer purchasing.

Analysts expect Tesla to continue to be able to increase output, forecasting around 231,000 vehicle deliveries for the current quarter.

CEO Elon Musk explained that the company’s greatest challenge is securing microcontroller chips: “Fear of running out is causing every company to overorder — like the toilet-paper shortage, but at epic scale.” Nevertheless, Tesla managed to avoid the shortage by developing software for chips made by new suppliers.

The Wall Street Journal also noted:

Competition is intensifying. Last week, Mercedes-Benz AG said it would slash investments in combustion engines and plug-in hybrid technologies as it prepares to go all-electric by 2030. To stay ahead, Tesla is building new factories and advancing a program to produce battery cells in-house. It is also working to refresh its higher-end models, which had suffered from flagging sales in recent years.

Tesla said Monday that it planned to build its first vehicles assembled in Germany and Texas by the end of the year. The company again delayed the introduction of its semitrailer truck, already two years late and now forecast to be in customer hands in 2022.

Musk recently made news for stating that Tesla is still weighing the possibility of accepting payments via bitcoin, provided that the cryptocurrency is mined using green energy. 

“It looks like bitcoin is shifting a lot more toward renewables and a bunch of the heavy-duty coal plants that were being used… have been shut down, especially in China,” said Musk during a conversation with Twitter CEO Jack Dorsey and Ark Invest CEO Cathie Wood. “I want to do a little more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend toward increasing that number. If so, Tesla will most likely resume accepting bitcoin.”

Declaring “I might pump but I don’t dump,” Musk revealed that bitcoin is his largest holding “outside of Tesla and SpaceX stock.”

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