The stock has risen 10% in the past month.
Increased factory production capacity, secured production capacity of 1.9 million units
Profitability expected to improve in the second half… “Increasing investment attractiveness”
[아시아경제 이민지 기자] As Tesla announced solid results in the second quarter, dispelling concerns over earnings, some say it is necessary to pay attention to the attractive valuation of the company.
On the 25th, Tesla stock was pointing at $816.73. Tesla stock has risen 10.80% in the past month, but it seems that the improvement in investment in technology stocks and expectations for earnings have boosted the stock price.
In the second quarter, Tesla recorded sales of $169.3 billion and EPS of $1.95, up 41.6% and 56.6% YoY, respectively. It beat the market expectations of US$168.8 billion and US$1.83 by 0.3% and 24%. Despite the impact of the Giga Shanghai shutdown, global supply chain restrictions, and inflation, an increase in the number of vehicles delivered and an increase in the average selling price led to the strong performance.
The automobile division recorded $14.62 billion in sales, with a gross profit margin (GPM) of 27.9%. Electric vehicle production increased by 601% for Model S and X and 25% for Model 3 and Y compared to the previous year, recording 258,580 units. Compared to the previous year, the number of units delivered increased by 753% for Model S and X and 20% for Model 3 and Y, to a total of 254,695 units. In the second quarter, new factories in Texas and Berlin were operated, but the sales of electric vehicles decreased by 17.9% from the previous quarter due to the impact of Corona 19 at factories in China. However, OP margin reached a solid 14.6% thanks to an increase in average selling price. The energy division’s revenue was $866 million. As solar power and ESS sales increased 121% and 68% QoQ, respectively, GPM recorded 11% for the first time in 10 quarters.
Despite supply chain constraints, Tesla’s annual sales forecast was maintained at 1.4 million units. This is a 50% increase over the previous year. It is analyzed that the expansion of production capacity and optimization of the production process will have an impact. Jo Su-hong, a researcher at NH Investment & Securities, said, “The main problem among electric vehicle demand and supply is supply.
Looking at production capacity, Giga has secured a production capacity of about 1.9 million units with the restart of Shanghai and full-scale operation of the new plant. Giga Shanghai is expanding its annual production capacity from 500,000 to 1 million, and is expected to produce 2.5 million units per year by the end of this year. Hee-seung Cho, a researcher at Hi Investment & Securities, said, “Giga casting is highly likely to expand to 1 million units each after the utilization rate rises to a certain trajectory, given the large sites in Berlin and Texas. By reducing the number of robots by more than 70%, it will lead to time and cost savings in vehicle production.”
The Full Service Driving (FSD) beta is currently deployed to more than 100,000 customers and has secured more than 35 million miles of autonomous driving data. At the end of this year, a price increase is being considered before the beta service is expanded across North America. However, while profitability is expected to improve, share momentum is expected to continue until AI Day at the end of September. A growth trend in the energy sector is also expected. Demand for solar power and ESS is surging due to the extreme weather in the second half of the peak season as well as the heat wave.
Analysts predicted that Tesla’s stock price has recently fallen excessively relative to its earnings, so investors should consider buying it. In the case of Tesla, the valuation of Tesla is significantly lower than before due to overlapping issues related to Bitcoin volatility and Twitter acquisition. By selling 75% of its holdings, it is estimated that the risk of share price fluctuations has also been partially resolved.
Ham Hyung-do, a researcher at Shinhan Investment Corp., said, “As global raw material prices fall, Tesla’s cost increase rate will slow from the second quarter, and share momentum will continue until AI Day, scheduled for the end of September. We need to keep the growth potential of light + ESS open,” he said.
Reporter Lee Min-ji ming@asiae.co.kr