Tesla Posts Record Profits But Future Of Batteries, Cybertruck Hazy

Tesla posted a bigger second-quarter profit than expected on Tuesday, thanks to higher sales of its less-expensive electric vehicles, as it raised vehicle prices and cut costs, Hyunjoo Jin and Akanksha Rana reported for Reuters.

However, Tesla CEO Elon Musk said a global chip shortage that led to temporary shutdowns for the automaker, remains serious, and offered no details on the timing of its Cybertruck and next-generation batteries.

For the first time since late 2019, Tesla profits did not rely on sales of environmental credits to other automakers, a sign of increasing financial health for the manufacturing operation. Shares of the world's most valuable automaker rose nearly 1% in extended trade.

In a call with investors and analysts, Tesla executives said that volume production growth for this year will depend on parts availability, as it aims to grow deliveries by more than 50%.

Musk said Tesla has "many calls at midnight, 1 a.m., just with suppliers about resolving a lot of the shortages."

While some people had suggested Tesla build its own chip fab, he pointed to the long lead time. "That would take us, even moving like lightning, 12 to 18 months," he said. Still, Musk said Tesla expects to start limited production this year of the Model Y SUV at factories under construction in Texas and Germany.

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