The exceptional increase in profits for Tesla Company
Tesla, led by billionaire entrepreneur Elon Musk, posted a net profit of $1.6 billion and sold 241,391 cars.
“We delivered the best net income, operating income and gross profit in our history,” Tesla said.
The company said China remains its main export hub and that it plans to deploy a different type of battery in its standard vehicles worldwide.
The new lithium iron phosphate batteries are cheaper than traditional batteries but offer a shorter range, Reuters reported. Analysts said this could help keep costs down and deal with parts shortages.
Tesla said it had faced a “variety of challenges” to keep its factories running, which included the global shortage of car microchips, congestion at ports and “rolling blackouts.”
There is currently a worldwide shortage of computer chips, also known as semiconductors, which are used in millions of products including cars, washing machines and smartphones.
“While Fremont factory produced more cars in the last 12 months than in any other year, we believe there is room for continued improvement. Additionally, we continue to ramp Gigafactory Shanghai and build new capacity in Texas and Berlin,” it said.
“The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain.”
The majority of Tesla’s revenue came from the sales of its lower-priced Model 3 and Model Y cars, which rose 87% to 232,102.