Company profits and chip shortages

Tesla expectedly beat Wall Street estimates for second-quarter earnings and revenue. However, due to battery material shortages and a shortage of chips, Tesla will not begin mass production of the Cybertruck until 2022. The start of Semi Truck production has also been delayed until next year.

Tesla (TSLA) shares, whose growth has lagged the overall market, rose slightly after reporting financial results for the second quarter that ended in June.

After the close of trading on Monday, Tesla expectedly reported strong results, given comparisons to last year when the company's deliveries and financial results were affected by temporary plant closures due to the pandemic.

On July 2, Tesla reported sales of 201,250 electric vehicles in the second quarter, the lion's share of which were Model 3 and Model Y deliveries.

The company did not disclose its electric car sales statistics by region.

Tesla on Monday announced a record net profit of $1.14 billion, up from a value of $104 million in the second quarter last year.

Tesla's quarterly return on car sales was 28.4%, higher than in any of the last four quarters.

Earnings per share for Tesla were $1.45, above analysts' average estimates expecting $0.98. The company's total revenues rose 88% to $11.96 billion, above forecasts of $11.30 billion.

Tesla's total revenue from car sales was $10.21bn, of which only $354m, about 3.5%, came from the sale of regulatory green energy credits to other manufacturers. Revenues from SolarCity's solar energy and energy storage systems were up 60% on the previous quarter to $801 million, but CEO Elon Musk said their production is limited due to a shortage of chips, a shortage that is a worldwide problem.

Tesla also received $951m in service fees. The company now has 598 shops and service centres, as well as a taxi fleet of 1,091 vehicles, just 34% more than a year ago.

In its report, Tesla also wrote down $23 million due to the depreciation of bitcoins, which it bought for $1.5 billion in February this year. In the first quarter, Tesla recorded revenues from the sale of digital assets of $272 million.

Tesla shares are down 25% from the high of 8 January and 6.8% YTD, after posting an 88% increase for 2020.