Categories: Automobile

Tesla Q2 earnings: Profit rises on price hikes

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Tesla Inc on Wednesday reported that second quarter net income was $2.26 billion, compared with $1.14 billion a year earlier.

The automaker also 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 percent 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 aluminum used for the body, along with other raw materials.

Chief Executive Officer 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 demand for its electric cars due to a shutdown of its Shanghai factory and production challenges at new plants.

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