Written by Mark Crouch, analyst at social investing network eToro
Tesla had once seemed to weather the global chip shortage and supply chain crisis where other car makers were struggling, but its latest quarterly earnings show it is now also feeling the strain.
On an annual basis, the firm has managed to grow revenue by 42% and earnings by 57%. However, both financial measures are down significantly between the first and second quarters demonstrating that Tesla is far from immune from the production issues other manufacturers are facing.
The reopening of Tesla’s Shanghai factory will help, but materials shortages are something the entire industry is contending with and for which there is no easy or quick remedy. For that reason, we are not expecting a sharp uptick in performance in Q3.
