Tesla on Wednesday reported a better-than-expected profit of $2.3 billion for the second quarter, despite a hit from the Covid-19 lockdowns in Shanghai, which weighed on profit margins.
Elon Musk’s ambitious electric vehicle company made about twice as much profit in the just-completed quarter as in the same period last year.
In recent weeks, Musk has made headlines for pulling out of a $44 billion acquisition of Twitter that has sparked a lawsuit from the social media giant.
While earnings beat estimates, they fell short of those in the first quarter, the first consecutive earnings decline since late 2020, which coincided with a contraction in auto profit margins on rising costs.
Revenue rose 42 percent to $16.9 billion, but below the $17.1 billion forecast by analysts.
The company cited resistance from Shanghai, where the factory was completely closed for part of the quarter. But Tesla said it ended the quarter with “a record monthly production level” after the restart in China.
However, it called supply chain challenges an ongoing headache, as factory closures, labor shortages, logistics and other issues “limited our ability to consistently run our factories at full capacity.”
During the quarter, Tesla liquidated about 75 percent of its Bitcoin holdings, which have plummeted in value in 2022.
Shares of Tesla rose 1.9 percent in after-hours trading to $756.63.
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