Tesla Earnings in Profits Decline Quarterly
With CEO Elon Musk blaming it on production.
Tesla reported a quarterly decline in revenue and earnings due to supply chain complications emerging, inflation, and an extended shutdown in China.
The company still managed to generate $16.9 billion USD in revenue in the second quarter. However, that is lower than the $18.8 billion USD generated in the first quarter. Tesla stated that they earned $2.3 billion USD in the second quarter compared to $3.3 billion in the first quarter.
Despite the decline, the company’s year-over-year result remains strong, with revenue increasing 42% from the $11.96 billion USD. CEO Elon Musk highlighted the company’s achievement despite the decline, stating that the quarter ended with the highest vehicle production in its history. Musk credited the arrival of its new facilities in Berlin and Austin and the return of its factory in Shanghai.
“Right now our problem is very much production,” Musk added. “So, we have long leads on — as anyone can tell if they order a car — if you order a Model Y it will arrive sometime next year. So this is clearly not an issue for many months (referring to demand). For us, our problem is overwhelmingly that of production.”
Tesla also dumped 75% of its Bitcoin, worth around $936M USD, at an average selling price of about $29,000 per bitcoin. The company stated that they still have a remaining value of $128 million USD, which brings them to a loss of around $150 million USD since their purchase in 2021.
In case you missed it, Elon Musk is targetting Cybertruck deliveries for mid-2023.
