Tesla: a money-making machine in the second quarter

While electric cars have outsold diesels, Tesla took the opportunity not only to position its Model Y at the top of sales but also to increase its revenue by 47%. 

This Wednesday, July 19, the American company announced a remarkable 20% increase in its net profit for the second quarter, amounting to $2.7 billion. Nonetheless, the manufacturer’s turnover is $24.92 billion.  

A decrease in margins for an increase in profit

Recently, Tesla has lowered the prices of its vehicles. Some discounts on the Model 3 and Y ranges are still available on the website depending on stock levels. Over the past year, Tesla vehicle deliveries nearly doubled, from 254,695 a year ago to 466,140 this quarter. Price reductions are one of the plausible reasons for this increase in sales and the company’s profit. However, the company’s margin fell by 1.1%, from 19.3% in the first quarter to 18.2% in the second quarter.

Production slowdown expected for the third quarter

Tesla CEO Elon Musk spoke at a conference with analysts: “We continue to aim for 1.8 million vehicles delivered this year, but we anticipate a decrease in production in the third quarter due to factory closures this summer for upgrades.” Several of the company’s sites will undergo improvements in the coming months to increase future production.  

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