Report from the company

Tesla (NASDAQ: TSLA) shares rose in the postmarket on Wednesday after the automaker reported earnings per share above analysts' forecasts and 42% revenue growth despite inflation concerns, component shortages and COVID-19 in China. Costs of increased production at new Tesla plants are dragging down profits.

Shares of Tesla (NASDAQ: TSLA), down 27.8% over the last quarter, rose slightly in the postmarket on Wednesday after the electric car maker released its financial results for the second quarter of 2022, ended June 30.

Although the pace of growth in key metrics slowed, analysts noted strong growth despite inflation concerns, component shortages and COVID-19 in China. Quarantine restrictions in Shanghai have forced Tesla to temporarily suspend or limit production at its plant in the second quarter of 2022.

Earnings per share (EPS) rose 57% (from last year's value) to $2.27 versus forecasts of $1.81.

Tesla's earnings rose 42% to $16.93 billion against estimates of $17.1 billion.

Gross profit from the automotive division was 27.9%, up from 32.9% last quarter and 28.4% a year ago, driven by inflation and increased competition for battery cells and other components used in electric vehicles.

Revenue from the automotive division was $14.6 billion, $1.47 billion from the services and other revenue segment and $866 million from the company's energy segment.