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Tesla Profit Tops Target

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Tesla Profit Tops Target
21 Jul 2022
5 min read

News Synopsis

A series of price increases for its Electric Vehicles (EVs) helped offset production issues brought on by Covid-19 lockdowns in China, according to a report released on Wednesday by Tesla Inc.

Despite the target becoming more challenging, Chief Financial Officer Zachary Kirkhorn said Tesla was still aiming to increase deliveries by 50% this year and that it was still "possible with strong execution."

Elon Musk, the CEO, predicted that most commodity prices would stabilise by the end of 2022 and that inflation would start to ease.

According to Musk, Tesla has a production issue rather than a demand issue. Despite the fact that vehicle prices have increased to what he called "embarrassing levels," he rejected the notion that the world's economic issues are hurting interest in Tesla.

Since the beginning of 2021, the cost of Tesla's Model Y long-range version in the United States has increased by more than 30%, to $65,990. Tesla stock increased by about 1% in after-hours trading. The shares have decreased by about 40% since their November peak.

With a monthly production level that set a new record, Tesla's China factory finished the second quarter. By the end of the year, new factories in Texas and Berlin, according to Musk, hope to produce 5,000 cars per week. Berlin produced 1,000 cars per week in June.

TWN Special