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Tesla reaches milestone with its first $1BILLION quarterly profit

Tesla's quarterly profit has surpassed $1billion 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 on 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, California, company earned $1.1billion, or $1.02 per share, in the April-June period. 

That was more than 10 times its profit at the same time last year. 

Elon Musk, the founder of Tesla, is now the third richest man in the world. On Monday Tesla announced that the company earned $1.1billion from April to June

Revenue nearly doubled from last year to about $12billion.

Tesla now boasts a market value of roughly $630billion, 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 $163billion, 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. 

While other major automakers had to dramatically curtail production during the first half, Tesla so far has been able to secure an adequate supply of chips to churn out vehicles at the fastest rate in its history.

In the most recent quarter, Tesla delivered more than 206,000 vehicles within a three-month span for the first time in its history. It is also gearing up to add another sports utility vehicle, the Model Y, to its lineup later this year.

The new Tesla P85D on display at Columbus Circle in New York in November 2015. It was described as the fastest sedan in the world

But in a sign that Tesla isn't immune to the shortage in chips and other components that is hurting its rivals, the company disclosed that it will delay the introduction of a highly anticipated semi truck to some time next year. Its original plan was to introduce it this year.

Tesla also warned that the availability of parts will determine whether it will be able to maintain the first-half production pace that raised hoped the company will be able to manufacture more than 800,000 vehicles this year. 

That would be a significant increase from nearly 510,000 last year, when government restrictions during the early stages of the pandemic forced the company to temporarily shut down its California factory.

The uncertainty may have dampened some of the investor response to Tesla's surprisingly strong quarterly results. 

The company's stock gained more than two percent in extended trading Monday after the second-quarter numbers came out. 

The stock has fallen about 25 percent from its peak price reached six months ago.

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