SOURCE / COMPANIES
Tesla reports more than $1 billion in net income during Q2, Shanghai now ‘primary export hub’
Published: Jul 27, 2021 11:21 PM
Tesla Photo:Xinhua

Tesla Photo:Xinhua


 
Tesla recorded $1.14 billion in net income for the second quarter this year, the first time it has surpassed $1 billion in a quarter, with more reliance on Shanghai as its main export hub.

The US electric vehicle maker delivered more than 200,000 cars in the second quarter, and achieved an operating profit margin of 11 percent, according to financial details the firm sent to the Global Times on Tuesday.

The firm said that its supply chain was still being affected by global semiconductor shortages and port congestion. 

Since global vehicle demand has again surged, the supply of parts and components will greatly affect delivery growth in the second half of the year, the firm added, while noting that production in Shanghai remained strong, 

“Due to strong US demand and global average cost optimization, we have completed the transition of Gigafactory Shanghai as the primary vehicle export hub,” the firm said in its earnings report.

China is now indeed a global manufacturing base for Tesla, Zhao You, an auto parts supplier in Nantong, East China’s Jiangsu Province, told the Global Times on Tuesday.

“China’s auto industrial chain may no longer be the most price-competitive one in the world, but it is the most comprehensive, allowing Tesla to find anything it wants,” Zhao said.

In its first-quarter financial results issued in April, Tesla said that its Shanghai factory would continue to increase quarterly output through the year. The current annual capacity is 450,000 vehicles, and exports to Europe and the Asia-Pacific region continue to progress as planned.

The Gigafactory 3 in Shanghai accounted for about 45 percent of Tesla’s global sales, according to analysts. The factory exported more than 26,000 vehicles in April and May, most of them bound for European and Asian markets, according to CNBC, citing the China Passenger Car Association (CPCA).

Due to consumer complaints, quality issues and other negative publicity, Tesla's sales in China fell sharply in April. However, Tesla launched loans and other end-of-season promotions, and sales rebounded in May and June.

Tesla’s May sales in China reached 21,936 units, up 88 percent compared with April, data from the CPCA showed. In April, Tesla’s sales in the Chinese market tumbled 67 percent to 11,671 units after the US EV-maker ran into its biggest public relations crisis in China.

Observers said that although the US car firm has gained popularity in China, it still needs to strengthen its product quality amid intense competition in the electrical vehicle sector from Chinese firms and big global names such as Volkswagen.

Global Times 

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