Tesla's quarterly profit has surpassed $1 billion for the first time thanks to the electric car pioneer's ability to navigate through a pandemic-driven computer chip shortage that has caused major headaches for other automakers. The financial milestone announced Monday extended a two-year run of prosperity that has erased questions about Tesla’s long-term viability raised during its early years of losses and production problems. Tesla now has cemented its position as the leader in the shift away from gas-combustion that is expected to make it even more profitable than during its most recent quarter. The Palo Alto, Calif., company earned $1.1 billion, or $1.02 per share, in the April-June period, the AP reports. That was more than 10 times its profit at the same time last year. Revenue nearly doubled from last year to about $12 billion.
Adjusted to exclude one-time items, Tesla earned $1.45 a share in the latest quarter, easily topping the 94 cents expected by Wall Street analysts, according to FactSet. Tesla now boasts a market value of roughly $630 billion, far more than any other automaker and 14 times more than what the company was worth just two years ago. Its mercurial CEO, Elon Musk, is now sitting on the world’s third largest fortune at an estimated $163 billion, according to Forbes magazine’s calculations. For all its recent success, Tesla's momentum could still be slowed by a persisting shortage of chips that have become vital parts in modern cars. The uncertainty about the chip shortage may have somewhat dampened the investor response to Tesla's surprisingly strong quarterly results. The company's stock gained more than 1% in extended trading Monday after the second-quarter numbers came out. The stock has fallen about 25% from its peak price reached six months ago.
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