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Tesla’s Revenue Grows But Profit Margins Decline

Tesla reveals a 42% jump in revenue, but in conjunction with declining car profit margins

Tesla stock rose slightly following the release of second-quarter results, as the electric vehicle maker earned $2.27 per share on an adjusted basis, beating analyst estimates of $1.81 per share, as for revenues, it amounted to 16.93 billion dollars, but it failed to reach the level of expectations of 17.1 billion dollars.

Gross profit margins reached 27.9%, down from 32.9% during the previous quarter and 28.4% during the same quarter a year ago, as they were affected by inflation and fierce competition for battery cells and other parts used in electric vehicles, and the automotive revenue of $14.6 billion made up total revenue, plus $1.47 billion from services and other revenue streams for the company, and energy division revenue was $866 million.

Regulatory corporate credit income reached $344 million, which is a decrease of about $10 million, or 3%, compared to the same period in 2021. Read more [Weak Deliveries in Tesla in The Second Quarter].

CEO Elon Musk said that production of Tesla’s new plant outside Berlin exceeded 1,000 cars per week in June, and he expects the new plant in Austin, Texas, to cross the 1,000 car-weekly barrier over the past few months. Read more [Software Errors in Tesla Cars, German Traffic Agency Stated].

Tesla inflated its infrastructure even further by the size of its stores and service centers, revealing that it had 709 stores and service locations during the quarter with 3,971 fast charging ports (a total of 36,165 fast charging ports), and these numbers represent a growth of 19% % in service centers and stores year on year with a 34% jump in the number of shipping sites.

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