FT News Briefing Tesla shines despite production disruptions
Jul 21, 2022
Tesla continues to thrive with impressive revenue growth, even amidst production hurdles in China and high costs in new plants. Meanwhile, Ukraine finds relief from western creditors, as Sri Lanka faces a potential debt crisis due to rising energy costs and a strong dollar. In political news, Italy's Prime Minister Draghi stands on shaky ground with looming elections, while Liz Truss and Rishi Sunak gear up for an intense race for UK Prime Minister. It's a whirlwind of commerce, politics, and economic instability around the globe!
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Tesla's Resilience
- Tesla's Q2 revenue grew 42% YoY despite production issues in China and expenses from new factories.
- Their adjusted earnings per share also jumped by almost 60%.
Tesla's Production Challenge
- Tesla needs a 70% production increase in the latter half of 2022 to meet Wall Street's 1.5 million delivery expectations.
- Elon Musk expressed unusual caution, avoiding specific predictions about achieving these targets.
EV Market Outlook
- High demand for electric vehicles continues, with Tesla's order book full through next year, allowing price increases.
- Concerns exist about weakening demand due to rising prices and economic uncertainty, particularly for other EV makers.