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Tesla profit soars as car sales boom despite chip shortages

Tesla delivers a record 200,000 cars to customers

Tesla (NASDAQ:TSLA) has revealed that its profits surged during the last quarter, despite supply problems caused by shortages of semiconductor chips among other issues.

During the previous quarter ending in June, its sales rose to £8.6bn, up from £4.3bn the year before.

Over the same time period the electric car manufacturer delivered a record 200,000 cars to customers.

Tesla confirmed that its profits improved thanks to the strong level of sales.

Profits during Q2 were £800m, up from £75.5m last year, thanks in part to sales of its Model 3 sedan and Model Y.

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The results came as carmakers across the world found it difficult to deal with demand thanks to a shortage of semiconductors.

“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” said Elon Musk, Tesla’s chief executive. “Fear of running out is causing every company to over-order – like the toilet-paper shortage, but at epic scale.”

The company adapted, using other suppliers, while the supply issue has not discouraged customers from wanting Tesla cars.

“Public sentiment and support for electric vehicles seems to be at a never-before-seen inflection point,” the company said in a statement.

The Tesla share price closed on Monday up by 2.21%.

Tesla also revealed that losses from bitcoin offset some of the money it made from its car sales.

The carmaker stomached a loss of $23m on its bitcoin holdings over recent weeks.

Having purchased $1.5bn worth of the cryptocurrency during Q1 of this year, Tesla did not buy or sell any digital assets during Q2.

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