Tesla posts record profits; delays Semi truck launch to 2022

Tesla said it has delayed the launch of its Semi truck program to 2022 to focus on starting factories and due to limited availability of battery cells and other parts this year. (Representative image)

Tesla on July 26 posted a second-quarter profit that beat Wall Street estimates, helped by higher sales of its less-expensive electric vehicles, as it raised vehicle prices and cut costs.

Tesla CEO Elon Musk, however, said a global chip shortage that led to temporary factory shutdowns for the automaker, remains serious.

Musk did not provide details on the timing of its Cybertruck and next-generation batteries.

Shares of the world's most valuable automaker rose nearly 1 percent in extended trade, Reuters reported.

In a call with investors and analysts, Tesla executives said that volume production growth for this year will depend on parts availability, as it aims to grow deliveries by more than 50%.

Musk said Tesla has "many calls at midnight, 1 a.m., just with suppliers about resolving a lot of the shortages."

While some people had suggested Tesla build its own chip fab, he pointed to the long leadtime. "That would take us, even moving like lightning, 12 to 18 months," he said.

Still, Musk said Tesla expects to start limited production this year of the Model Y SUV at factories under construction in Texas and Germany.

Tesla said it has delayed the launch of its Semi truck program to 2022 to focus on starting factories and due to limited availability of battery cells and other parts this year.

Musk did not give a timeframe for when Tesla will start mass production of its new-generation batteries and its much-anticipated Cybertruck.

"It is difficult to say when the last of the technical challenges will be solved," he said, referring to its 4680 battery cells.

He said Tesla has a backup plan of using its existing 2170 batteries, adding that its battery cell suppliers would double production next year.

The carmaker said revenue jumped to $11.96 billion from $6.04 billion a year earlier, when its California factory was shut down for more than six weeks due to local lockdown orders to fight the pandemic.

Analysts had expected revenue of about $11.3 billion, according to IBES data from Refinitiv.

Excluding items, Tesla posted a profit of $1.45 per share, easily topping analyst expectations for a profit of 98 cents per share.

Tesla said operating income rose with volume growth and cost reduction, which offset higher supply chain costs, lower regulatory credit revenue and other items including $23 million in losses on investment in cryptocurrency bitcoin.

In an aside, Musk said he "most likely will not be on earnings calls" going forward to discuss financial results with investors and analysts. These calls have been a colorful quarterly ritual Musk has used for discourses on Tesla technology, or to fire back at rivals or critics.

(With inputs from Reuters)