“Popular” models make Tesla’s profit exceed expectations

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Electric car maker Tesla beat Wall Street’s expectations for second-quarter profit and revenue as record deliveries offset the impact of a prolonged global shortage of chips and raw materials.

The company said on Monday that it expects to launch production this year of the SUV Model Y in Texas and Germany, but will delay the launch of the Semi model until 2022.

Still, despite the pandemic and the supply chain crisis that affected the auto industry, Tesla posted record deliveries in the quarter, thanks to sales of cheaper models, including Model 3 sedans and the Model Y crossover.

A automaker led by Elon Musk, said revenue jumped to 11.96 billion dollars, up from 6.04 billion a year earlier, when the US plant was closed for more than six weeks due to calls for a blockade to curb the spread of the coronavirus.

Analysts had expected revenue of about $11.3 billion, according to IBES data from Refinitiv. Excluding items, Tesla earned $1.45 a share, beating analysts’ projections of $0.98 a share.

Tesla said operating income increased primarily due to volume growth and cost reductions, which offset higher supply chain costs, lower credit income and other items, including $23 million in bitcoin investment losses.