Despite several hurdles it had to clear, Tesla officials reported the company’s second quarter net income was $2.26 billion — a 98% increase compared with the year-ago period.
The company logged big profits despite its Shanghai plant being shut down either full or partially for much of the quarter. The net income came on $16.93 billion in revenue, which was up 42% compared with last year’s results.
The company’s operating margin was 14.6% — something other automakers would shout from the rooftops. It’s earnings per share came in at $1.95, a jump of 91% when compared to the same quarter last year.
“In Q2, we achieved record production rates across the company,” the company said in a letter to shareholders. “However, we saw a continuation of manufacturing challenges related to shutdowns, global supply chain disruptions, labor shortages and logistics and other complications, which limited our ability to consistently run our factories at full capacity.”
Despite production problems, good sales
Like many other automakers, Tesla struggled with sporadic shutdowns, especially the previously mentioned closure of its Shanghai plant, which delivers vehicles to China, Australia, Europe and other places.
However, it moved past that challenge and the foibles encountered starting production at its new plants in near Austin, Texas and Berlin, Germany.
The company produces 258,580 new vehicles in Q2, up 25% from the second quarter of 2021. It delivered 254,695 vehicles to customers in the same timeframe, a 27% jump. Unsurprisingly, it faces the same vehicle supply issue its competitors do — it has just four days worth of vehicles.
While Tesla ramped up production in Texas and Germany, watched the pandemic idle its Shanghai plant, the original spot in California led the charge.
“Our Fremont Factory made a record number of vehicles in Q2. We see opportunities for further production rate improvements,” the company said. “In Texas, we have added flexibility to produce vehicles with either a structural battery pack or legacy battery pack. The next generation of 4680 battery cell machinery has been installed in Texas and is in the process of commissioning. Factory output in Texas continues to grow.”