Tesla’s profits rise despite global negative factors
The American manufacturer of electric cars, which is owned by Elon Musk, published a quarterly report. According to the document, Tesla’s profit for the last period increased by 2 times compared to the previous year and amounted to 2.2 billion dollars. Revenue increased by 1.4 times. And unlike other companies, Tesla’s growth was slightly affected by problems in the supply chain, as well as restrictions related to COVID-19, which caused production cuts in Shanghai.
As a result, the company’s price per share rose from $1.02 to $1.95. The earnings figure without the impact of one-time factors is now at $2.27 per share. That amount exceeded analysts’ expectations of $1.81 per share.
The U.S. maker’s quarterly revenue rose to nearly $17 billion, up from $12 billion last period.
The head of the corporation, Elon Musk, noted that despite the successes, the quarter was difficult for Tesla, but the company has every chance to reach record levels in the future period. The top management of the electric car manufacturer pays special attention to increasing business stability in the market, which will make it possible to withstand global problems and react flexibly to force majeure.
According to Musk, Tesla was able to restructure its processes in such a way as to minimize the consequences of supply chain disruptions that have been observed for several years.
Last quarter, the company’s production volume reached 258,58 thousand electric cars. A record-breaking month for Tesla was June when the maximum number of cars was produced in a month.
Last quarter, the corporation’s free cash flow was at $621 million. In the first quarter of the year, the figure was $2.23 billion. Tesla notes that the decrease in cash flow was quite expected and predictable, the main factor, in this case, was the outbreak of COVID-19 in Shanghai and the associated production process limitations. Moreover, analysts estimated the volume of cash flow at 487 million dollars.
At the end of the quarter, the corporation claimed it had about $19 billion in cash. At the same time, Tesla owns bitcoins, 75% of which it sold for $936 million. The company now has about $218 million in bitcoins.
Elon Musk notes that the liquidity situation is affected by the processes in China, but the corporation is ready for this. In addition, the businessman said that he is not going to change his policy toward bitcoin and will continue to invest in cryptocurrency.
