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Tesla Inc (NASDAQ: TSLA) on Wednesday posted its second-quarter profit that beat Wall Street estimates, bolstered by a string of price increases on its best-selling vehicles, which helped offset the carmaker’s production challenges and COVID-19 lockdowns at its factory in China.
The carmaker posted adjusted earnings of $2.27 a share, while analysts, on average, expected a profit of $1.81 per share.
Shares of Tesla jumped more than 4% in extended trading.
The Texas-based EV maker left its production forecast unchanged for 50% average annual growth “over a multi-year horizon,” showing a sign of confidence that it will be able to make up for lost output in the second half of 2022.
“With each of the Fremont and Shanghai factories achieving their highest-ever production months and new factory growth, we are focused on a record-breaking second half of 2022,” Tesla said in a statement.
In April, CEO Elon Musk predicted the carmaker would produce more than 1.5 million vehicles this year. Tesla had manufactured about 564,000 through the first half.
“The pace of production ramps in Austin and Berlin-Brandenburg will be influenced by the successful introduction of many new product and manufacturing technologies in new locations and ongoing supply chain-related challenges,” the company said.
Tesla said it delivered 254,695 vehicles globally in the second quarter, up 27% yearly but down from its first-quarter record of 310,048.
The company has raised the prices of its cars several times this year to cope with higher costs of raw materials, to which Musk said Tesla would drop prices when inflation cools.
Total revenue fell to $16.93 billion in the second quarter from $18.76 billion a year earlier. Analysts were expecting revenue of $17.10 billion.
Its automotive gross margin fell to 27.9% amid inflationary pressure.
Picture Credit: Business Insider
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