Tesla Profit Surging Despite Shortages of Semiconductor Chips

Tesla Has Suffered from A Reported Loss Of $23 Million Due to Its Investment in Cryptocurrency Bitcoin

The electric car firm has recently reported a surge in the Tesla profit, despite facing a shortage in quantity to the requirement for the semiconductor chips along with congestion at ports which further hampered the production line. The sales of vehicles have risen to $12 billion in the time duration of just three months till the end of June this year which had a direct impact on the Tesla profit gains and has increased from $6 billion in the previous year, during that time when their factory located in the United States was shut down.

Profit Surge

The electric car-making company has said that they have been able to deliver a record number of 200,000 vehicles to their customers in the same time duration. The public support towards greener automobiles has been greater than before this year, as the general population is becoming more aware and trying to help the environment.

Tesla, which is lead forward by the centibillionaire entrepreneur and CEO of Space X, Elon Musk, has reported on Monday that Tesla profits have observed a drastic increase due to their strong sales this year.

The total amount of Tesla profits gained in the second consecutive three months of the year 2021 has been $1.1 billion, which is a massive increase from $104 million during last year in the same time frame. The sales have been bolstered due to some of the cheaper Tesla cars of Model Y and Model 3 sedan.

In an update on Monday to the investors, Tesla has given a statement saying that the sentiment of the public, along with their support towards electric vehicles, is currently at a very high inflation point, which has made an impact over the Tesla profit gains of this year.

The firm added that they are currently trying to overcome the challenging task of driving down the costs of Tesla vehicles while increasing the production rate to make these electric cars so that they would be accessible to a major part of the general global population. The rate of increased vehicle production is dependent on the supply of key items that are required to make the vehicles, as the current demands have reached a record level.

Shortage of semiconductor chips

On Monday, while being on call with a financial analyst, Elon Musk said that at the current point, all people could agree that electric cars are the only way to go forward. The global shortage of semiconductor chips has become a very serious issue, and the manufacturing of Tesla vehicles would hinge on it as it has become the only part with the slowest supply chain and a possible hinder in the Tesla profits for the rest of the year.

Elon Musk also said that he has been making multiple calls late at night with the supplying firm in an attempt to resolve this persistent shortage, as it might impact his firm directly. Due to this, the waiting time for the delivery of Tesla cars is growing, especially across the region of Europe.

Tesla is currently looking to start the production of their vehicles at their newly established gigafactory in Berlin as soon as possible, to try to further soar the Tesla profits by the end of this year. The factory has been plagued with various delays, although the firm bill’s it as the most innovative high-volume electric car manufacturing plant across the world.

In the meantime, the manufacturing of Tesla vehicles is to be ramped up at their California hub.

Elon Musk was reportedly seen while on his visit to Luton in the earlier weeks of this year, which had sparked various rumors as he might be considered opening up another factory located in the United Kingdom, which might further enhance the Tesla profit gains in the upcoming year.

Other car-making firms like General Motors and Ford have reportedly been forced to suspend the production line in some of their factories that are located inside the United States, as they have been influenced by the shortage of semiconductor chips globally.

The Tesla profits in the second quarter of this year also suffered from a dent due to other factors such as the investment made in the cryptocurrency Bitcoin, which was later postponed as the mining process of Bitcoin has a quite harmful impact on the environment.

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