Tesla Q2 - Shanghai Can Do Better

Tesla reported its second-quarter numbers after the market close yesterday. This is its first successive decline in quarterly profit in more than a year as the EV maker recovers from an extended shutdown at its Shanghai gigafactory. The good news is that the results topped expectations despite all the headwinds of a global chip drought and higher material prices.

The Elon Musk-led company reported $16.9 billion in second-quarter revenue, up 42%, and $2.3 billion in profit, ahead of the $1.9 billion expected by Wall Street and more than double last year's $1.1 billion. This is still one of Tesla's strongest quarters, proving that demand for its vehicles remains high.

Elon Musk is still optimistic, saying the firm can still manage to produce more than 1.5 million cars this year, up about 60% as compared to last year and ahead of its long-term target of 50% per annum. Tesla CFO Zach Kirkhorn acknowledged that this target has become more difficult but will push for it nonetheless.

Management reported that June's output was a record for one month, and that Shanghai is operational again. We can't wait to see Tesla back at full production again and churning out over 25 000 vehicles a week. We still like the business for those who are committed to the clean energy movement.