During a earnings call, Tesla CEO Elon Musk unveils plans for Robotaxi's introduction by 2024

During a earnings call, Tesla CEO Elon Musk unveils plans for Robotaxi's introduction by 2024 ...

Tesla reported a further impressive profit growth on pricier automobiles Wednesday, and said its output strategy for 2022 was on track despite ongoing supply chain issues and a harrowing loss from recent COVID-19 lockdown measures in China.

Following the unveiling of new industrial facilities in Germany and the United States of Texas, Elon Musk''s high-flying electric vehicle company set a new high in quarterly earnings of $3.3 billion (roughly Rs. 2,51,275 crore). The results also should result in $23 billion (roughly Rs. 1,750,932crore) in new payouts to CEO Elon Musk, the world''s richest man.

Tesla reportedly expects to mass produce a robotaxi with no steering wheel or pedal by 2024, according to Musk during the earnings call.

Following the Chinese government''s recent COVID-19 restrictions, the company faces significant challenges.

"Our own factories have broken their capacity for several quarters as the supply chain became the major obstacle factor, which is expected to continue until 2022," Tesla says in its earnings release.

Still Musk said it "seems probable" the company will produce more than one and a half million automobiles in 2022, which would be above its long-term objective of at least 50 percent output growth.

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"We are growing very rapidly year over year and remain optimistic of reaching over 50% growth foreseeable future," Musk said on the conference call. "The future is very exciting."

Investors are concerned that Musk is being distracted by his Twitter offer at a time when Tesla is ramping up production in new industrial areas in Berlin and Texas.

"Gigafactory Austin and Gigafactory Berlin-Brandenburg will be no different," Tesla said in a statement.

The additions of new factories will be crucial to meeting demand and reducing the need for a China factory, the largest one, to recover from the shutdown.

The Model 3 Tesla is currently listed for a starting price of $42,690 (roughly Rs. 3,251,200), extending it beyond reach for many individuals.

Musk, who has long called for a way to make electric cars more affordable for the masses in order to combat climate change, said that "we absolutely need to make electric vehicle as affordable as possible."

"It''s been very difficult when inflation is at a 40- or 50-year high," Musk said, pointing out that suppliers have sought 20 to 30 percent price rises for equipment.

Struggle for affordability

Tesla reported a profit of $3.3 billion in the second quarter of the year, up 658 percent from the year-ago period, with a 1.8 percent increase in revenue reaching $18.8 billion (roughly Rs. 1,43,153 crore).

In the first quarter, the company produced 305,407 automobiles, while reducing the value of the previous quarter, but enough to increase production by more than one million in the last 12 months.

Tesla''s Shanghai factory "has lost about a month of built volume" owing to the closure, but says it''s "resuming at limited levels" and is attempting to resume producing as quickly as possible.

According to Kirkhorn, cost inflation on raw materials had increased in the first quarter, and that second quarter costs are "not that high."

As supply chain issues have remained, auto experts have warned that the limited raw materials used in the EV build-out may be a problem.

According to ISeeCars'' Karl Brauer, lithium, palladium, and nickel costs are a challenge for Tesla and the automobile industry more broadly.

"Cost and supply concerns about various battery components aren''t going away, and will likely increase as global EV production and demand grows," Brauer said.

"Electric automobiles have always struggled to be as cost effective as internal combustion automobiles. There''s no indication that the process will continue."

Musk addressed some of these issues for electric vehicle manufacturers, urging companies to focus on improving lithium supply.

Tesla claims lithium is responsible for cost increases and "a limiting factor" to growth of electric vehicles.

He encouraged companies to join the lithium business, which he said would generate significant margins owing to high prices.

"Can more individuals please enter the lithium industry?" Musk said. "The lithium margins right now are practically software margins....Do you like minting money? Well, the lithium business is for you."

Tesla has promised to make "some exciting announcements" about protecting battery raw materials.

Musk said its own 4,680 battery cells would become a risk to production next year if it does not reduce volume production by early 2023. "But we''re very confident in doing so," he said, adding that it will use its existing, 2,170 batteries for automobiles being built in Texas.

The results are the latest in a series of outstanding earnings that has brought glory to Musk, who has most recently made a hostile bid to purchase Twitter.

The social media platform is launching a "poison pill" program that would make it difficult for the billionaire to acquire a controlling stake. The matter was not addressed during the Tesla conference call.