Tesla sees profit growth as prices rise

July 20 (Reuters) – Tesla reported a rise in quarterly profit on Wednesday as higher prices for several of its top models helped the electric vehicle maker offset production challenges.

The group’s stock rose 4% in post-closing Wall Street trading.

In a statement, Tesla said it was focused on a record second half as the Fremont, Calif., and Shanghai, China, plants hit all-time highs in production.

The firm headed by Elon Musk has raised the prices of its vehicles several times this year to respond to rising prices for lithium used for batteries and aluminum used for bodywork.

Once inflation subsides, selling prices will be revised downwards, promised Elon Musk in the past.

Over the April-June period, Tesla’s turnover fell to 16.93 billion dollars, against 18.76 billion dollars a year earlier, marking the end of a series of record results published for several quarters.

This is a lower than consensus amount, which stood at $17.10 billion according to IBES data from Refinitiv, while the automaker has struggled to meet demand due to the partial closure of its Shanghai plant and production problems in its new factories.

Earnings per share in the second quarter were $1.95, down from $1.02 a year earlier. (Report Hyunioo Jin San Francisco and Nivedita Balu Bangalore; French version Jean Terzian)

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