Tech

Tesla Poised for Record Earnings as It Navigates Global Chip Shortage

Tesla Inc. is expected to report a record quarterly profit, largely evading the effects of a global chip shortage that has constricted the global auto industry.

The Silicon Valley electric-car maker produced more than 206,000 vehicles in the second quarter, more than doubling its year-earlier output. Global auto sales have cooled somewhat amid a shortfall of semiconductors. Many auto makers, including Ford Motor Co. and General Motors Co. , have been forced to idle assembly plants over supply constraints, squeezing vehicle inventories and pushing up prices.

Wall Street expects Tesla’s vehicle-delivery growth to help drive second-quarter revenue to roughly $11.4 billion, up from $6 billion a year earlier, according to analysts surveyed by FactSet. Net income, when the company posts results after the bell Monday, is forecast to reach about $600 million, nearly six times the year-earlier profit.

“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” Tesla Chief Executive Elon Musk said in June. “Fear of running out is causing every company to overorder—like the toilet-paper shortage, but at epic scale.”

The company said it navigated the shortage in the first quarter by pivoting to new chips and developing software for devices made by new suppliers.

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