As the negative effects of the shutdown of the Shanghai plant emerged, Tesla (TSLA-US) on Wednesday (20th) following the market closed, it announced that its second-quarter profit was the first quarterly contraction in more than two years, but it was still better than market expectations. Shares rose more than 4% following that.
Even though CEO Elon Musk expressed optimism in April that more than 1.5 million electric vehicles will be produced this year, an annual increase of 60%, and the 50% average annual vehicle delivery growth target is expected to be achieved ahead of schedule, recent months The challenges ahead have made the market worried regarding Tesla’s ability to achieve its long-term goals.
Still, Tesla on Wednesday reiterated its delivery target unchanged, showing the company remains confident in making up for lost production in the second half of the year.
However, Tesla said that issues such as parts supply, labor shortages and logistics made it difficult for the factory to be fully loaded last quarter, and whether the Berlin and Texas plants increase production depends on the smooth release of new models and the improvement of the supply chain.
Musk pointed out on the earnings call that Tesla’s Berlin plant produced more than 1,000 vehicles a week in June, and the new Texas plant is also expected to achieve a weekly production target of more than 1,000 vehicles in the next few months.
After the earnings report was released, Tesla rose by more than 4% following the market, but the gains converged to 1.5% before the deadline, with a tentative report of $753.48 per share. The stock closed up 0.80% on Wednesday and is down 30% so far this year.
Q2 (as of June 30) earnings key figures vs Refinitiv expectations
- Revenue: $16.93 billion, down 10% quarter-on-quarter, up 42% year-over-year, market forecast of $17.1 billion
- (Non-GAAP) Net Income: $2.62 billion, up 62% year over year
- Adjusted EBITDA: $3.79 billion, up 52% year over year
- (Non-GAAP) EPS: $2.27, down 30% quarter-on-quarter, up 57% year-on-year, market forecast is $1.81
- Automotive gross profit margin: 27.9%, compared to 28.4% in the same period last year
Revenue broken down by business
- Auto business: $14.6 billion
- Energy production and storage business: $866 million
- Services and other businesses: $1.47 billion
Tesla earlier this month reported Q2 vehicle deliveries of 254,695 vehicles, an increase of 27% year-on-year, but an 18% decline from the previous quarter, ending a streak of consecutive quarterly growth since the end of 2020.
Among them, due to factors such as inflation, intensified competition in the supply of battery parts for electric vehicles, and the appreciation of the US dollar, the gross profit margin of automobiles in Q2 fell from 32.9% in the previous quarter to 27.9%, which was also lower than the 28.4% in the same period last year.
Additionally, revenue from the sale of regulatory credits to other automakers was $344 million in the second quarter, down $10 million or nearly 3% from the same period last year.
bitcoininvest
Tesla also providescryptocurrencyAsset-related details, showing that the company has invested 75% of itsbitcoinConverted to fiat currency, adding $936 million in cash to the balance sheet. Overall, Tesla’s Q2 cash and cash equivalents increased by $847 million in the last quarter.
Musk explained why he sold so muchbitcoinassets, because it is uncertain when China will be able to lift the blockade, and it is very important for the company to maximize its cash position as much as possible, and he also emphasized that this should not be regarded as a negativebitcoinsome kind of judgment.
Tesla to buy $1.5 billion in early 2021bitcoinwhich was trading at over $28,000 at the time, following a brutal sell-off,bitcoinIt fell below $17,700 in mid-June.
Inflation uncertainty
Constrained by high costs, low output and supply chain issues, Musk admitted in late May that the new factories in Texas and Berlin are like “giant melting pots of burning money”, causing billions of dollars in losses for the company.
Tesla Chief Financial Officer Zachary Kirkhorn warned in an earnings call on Wednesday that inefficiencies at the Texas and Berlin plants will continue to weigh on the company’s earnings this year, but should diminish as the company ramps up production.
