London Daily

Focus on the big picture.
Tuesday, Sep 01, 2026

Tesla profit surge driven by record car deliveries

Tesla profit surge driven by record car deliveries

Tesla has reported surging profits, despite shortages of semiconductor chips and congestion at ports hampering production.

Sales rose to $12bn (£8.6bn) in the three months to the end of June, up from $6bn a year ago, when its US factory was shut down.

The electric carmaker said it delivered a record 200,000 cars to customers in the same period.

It added that public support for greener cars was greater than ever.

The company, led by billionaire entrepreneur Elon Musk, reported on Monday that profits soared off the back of strong sales.

Profits for the second three months of the year were $1.1bn, up from $104m last year, bolstered by sales of its cheaper Model 3 sedan and Model Y.

In an update to investors on Monday, Tesla said: "Public sentiment and support for electric vehicles seems to be at a never-before-seen inflection point.

"We continue to work hard to drive down costs and increase our rate of production to make electric vehicles accessible to as many people as possible."

Tesla added that how quickly it could produce cars throughout the rest of the year would depend on the supply of key parts of its vehicles, with demand at "record levels".

Chip shortage


On a call with financial analysts on Monday, Mr Musk said: "At this point, I think everyone can agree, electric vehicles are the only way forward."

Mr Musk said during the call that the global chip shortage "remains quite serious" and manufacturing would hinge on this "slowest part of the supply chain".

He also described late-night calls with suppliers in an attempt to resolve shortages.

As a result, there were growing waiting times for Tesla cars, especially across Europe, the company said in its results.

It will look to start production at its new Berlin "gigafactory" as soon as possible. It has been plagued by delays, although the company bills it as "the most advanced high-volume electric vehicle production plant in the world".

It will ramp up the manufacturing of its cars at its California hub in the meantime.

Mr Musk was also reportedly seen visiting Luton earlier this year, sparking rumours he may be considering a Tesla factory in the UK.

Elon Musk recently said the firm may accept Bitcoin as a form of payment again in the future


Other car giants such as Ford and General Motors have been forced to suspend production temporarily in some US factories, having been hit by the global shortage of semiconductors.

Profits at Tesla in the second quarter were also dented, however, by other items such as investments in the cryptocurrency Bitcoin.

It invested heavily in the digital currency previously. But it stopped taking Bitcoin as a form of payment earlier this year because of Mr Musk's concerns about the environmental impact of Bitcoin mining, which uses huge amounts of electricity.

The company reported a $23m loss on its Bitcoin investments on Monday, although its chief executive recently signalled it might accept it again in future.

Wedbush analyst Dan Ives said that this figure was, however, "much lower than many had feared".

He added that overall, the set of results marked a "step in the right direction" for the company, with "healthy" growth also seen in China, where Tesla began manufacturing last year.

Mr Ives did point out, however, that a big question for investors would be when the company would be able to hit profitability excluding the income it gets from reselling to other carmakers the credits that it earns for exceeding emissions and fuel standards.

Between April and the end of June, it saw $354m in revenues generated through the sale of such credits, down from $428m the same period a year before.

Newsletter

Related Articles

0:00
0:00
Close
Royal Mail Keeps First-Class Stamps at £1.80 and Second-Class at 91p
Church of England Prepares Formal Apology Over Historical Forced Adoptions
UK Competition Regulator Caps Veterinary Prescription Fees at £21
UK Aviation Authorities Roll Out Airspace Changes to Reduce Flight Delays
England Makes School Allergy Policies Mandatory Under Benedict’s Law
England and Wales Tighten Child Safeguarding Checks by Removing Supervision Exemption
Cornwall Geothermal Plant Begins Commercial Power and Lithium Operations
UK Inflation Holds Near 2.9% as Energy Costs Remain a Risk
UK Productivity Growth Averages 1.1% Over Two Years, Resolution Foundation Says
England Introduces Nationwide School Smartphone Ban and Uniform Limits
UK Gives Border Officers New Powers to Seize Migrants’ Mobile Phones
Green Party Wins First Westminster By-Election in Gorton and Denton
UK and EU Advance Gibraltar Border Deal Allowing Spanish Guards to Conduct Arrival Checks
Robert Jenrick Joins Reform UK After Losing Conservative Whip
Andy Burnham Faces First Prime Minister’s Questions After Labour Cabinet Overhaul
ScottishPower Recycles Nearly All Materials From Historic Hagshaw Hill Wind Farm
Millions Travel Across England, Wales and Northern Ireland for Summer Bank Holiday
Met Office Issues Yellow Thunderstorm Warnings Across Southern England
Four Arrested After Bank Holiday Stabbing Violence in Kettering
Scottish Chamber of Commerce Warns Tax and Business Costs Risk Holding Back Scotland
UK Government Launches Youth Employment Drive With Major Retailers
UK and Ukraine Advance AI and Defence Technology Partnership
Prime Minister Andy Burnham Moves to Exclude Serious Offenders From Early Release
Twelve Arrested After A66 Crash Kills Seven, Including Two Police Officers
Bank of England Governor Warns AI Investment Boom Could Trigger Global Market Correction
London Science Museum Ends Long-Running BP Sponsorship
Scottish Homeowners Prepare Valuation Challenges Over Proposed Mansion Tax
UK Prosecutors Consider Charges Against Undercover Police in Spycops Scandal
James Cleverly Leaves Shadow Cabinet to Run for London Mayor
Avanti West Coast Drivers Agree 3.6% Pay Rise, Averting Strike Action
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
UK Government Retreats From Plan to Unfreeze Personal Income Tax Threshold
Northern Ireland Leaders Press UK Government for Sustainable Funding Settlement
UK Health Agency Warns Nationwide Salmonella Outbreak Could Worsen
NHS Warns Autism and ADHD Assessment Costs Have Become Unsustainable
UK Rejects Moratorium on AI Data Centres Despite Energy and Water Concerns
Thames Water Creditors Offer Government Golden Share in £10 Billion Rescue Plan
UK Warns Defence Executives of Russian Assassination and Sabotage Threats
Bank of England Holds Interest Rate at 3.75% Amid Inflation Risks
UK Restricts Early Prison Release for Serious Offenders as Jails Near Capacity
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
×