Tesla’s profits surge despite shortage of semiconductor chips, congestion at ports

Tesla has reported surging profits, despite shortages of semiconductor chips and congestion at ports hampering production.

Sales rose to $12 billion in the three months to the end of June, up from $6 billion a year ago, when its US factory was shut down.

The electric carmaker said it delivered a record 200,000 cars to customers in the same period.

It added that public support for greener cars was greater than ever.

The company, led by billionaire entrepreneur Elon Musk, reported on Monday said that profits soared off the back of strong sales.

Profits for the second three months of the year were $1.1 billion, up from $104 million last year, bolstered by sales of its cheaper Model 3 sedan and Model Y.

In a statement to its investors on Monday, Tesla said: “Public sentiment and support for electric vehicles seems to be at a never-before-seen inflection point.

“We continue to work hard to drive down costs and increase our rate of production to make electric vehicles accessible to as many people as possible.”

Tesla added that how quickly it could produce cars throughout the rest of the year would depend on the supply of key parts of its vehicles, with demand at “record levels”.

Mr Musk on a call with financial analysts on Monday said: “At this point, I think everyone can agree, electric vehicles are the only way forward.”

Mr Musk said during the call that the global chip shortage “remains quite serious” and manufacturing would hinge on this “slowest part of the supply chain”.

He also described late-night calls with suppliers in an attempt to resolve shortages.

As a result, there were growing waiting times for Tesla cars, especially across Europe, the company said in its results.

Other car giants such as Ford and General Motors have been forced to suspend production temporarily in some US factories, having been hit by the global shortage of semiconductors.