Tesla second-quarter profit rises on price increases
Musk-owned electric car giant sees shares rise 4%
California: Tesla on Wednesday reported a rise in quarterly profit, as a string of price increases on its best-selling vehicles helped offset production challenges, sending its shares up 4 per cent in extended trading.
Tesla has raised prices of its cars several times this year to cope with higher costs of lithium used in batteries and aluminium used for the body, along with other raw materials.
CEO Elon Musk has, however, said Tesla would drop prices when inflation cools.
Total revenue fell to $16.93 billion in the second quarter from $18.76 billion a year earlier, ending its streak of posting record revenue in recent quarters, as it struggled to meet the demand for its electric cars due to a shutdown of its Shanghai factory and production challenges at new plants.
Analysts were expecting revenue of $17.10 billion, according to IBES data from Refinitiv.
Net income was $2.26 billion for the latest quarter, or $1.95 per share, compared with $1.14 billion, or $1.02 per share, a year earlier.