Tesla reported earnings after the bell, and the results sent the stock up about 2% in a few hours.
- Earnings per share (EPS): $2.27 (adjusted) versus $1.81 expected, according to Refinitiv
- Turnover: $16.93 billion, versus $17.1 billion expected, according to Refinitiv
Automotive industry gross profit margin reached 27.9%, down from 32.9% in the previous quarter and 28.4% in the previous year, due to the impact of inflation and more competition for batteries and other components. other components in electric vehicles. Automotive sales accounted for $14.6 billion of the company’s total revenue, with $1.47 billion coming from services and other revenue, and $866 million from the company’s energy business.
The company generated $344 million in revenue from automotive regulatory credit in the second quarter, the company said in a statement. shareholder floor. That’s a $10 million drop or nearly 3% from the same period in 2021.
Tesla grew its charging infrastructure beyond both stores and service centers, reporting 709 store and service locations in the quarter and 3,971 Supercharger locations (for a total of 36,165 Supercharger connections) in the second quarter. Those numbers represent 19% growth in the number of store and service center locations year-over-year and 34% growth in the number of toll locations.
The company provided limited details on its crypto investments and sales, writing: “As of the end of Q2, we had converted approximately 75% of our Bitcoin purchases into fiat currency. . Q2 conversions added $936 million in cash to our balance sheet.” Tesla sent crypto enthusiasts uproar when it announced in early 2021 that it had bought $1.5 billion worth of bitcoins.
In the first day of this month, Tesla reported vehicle deliveries were 254,695 electric cars for the period ending June 30, 2022, representing a 27% growth quarter-over-quarter, but an 18% decrease in order. Deliveries are the closest approximation to sales that Tesla discloses. Its Model 3 and Model Y vehicles accounted for 93% of those deliveries.
Russia’s brutal invasion of Ukraine and the Covid outbreak in China exacerbated the ongoing shortage of semiconductors and components, among other difficulties in the supply chain. Covid restrictions in Shanghai forced Tesla to suspend or limit production at its factory there for the second quarter of 2022.
CEO Elon Musk lamented too high costs of starting production at new plants in Austin, Texas, and Grünheide in Brandenburg, Germany. In an interview with Tesla Owners Silicon Valley, a fan club recognized by the company, Musk said the two new factories “are giant smelters.”
The CEO also announced cut the number of heads in June.
Tesla’s crypto holdings also have the potential to drop in value significantly, depending on how the company trades them. Barclay analyst Brian Johnson said: in Monday that he expected Tesla to record a loss of approximately $460 million due to bitcoin refuse.
On the brighter side, Tesla recently marked a major milestone with an employee posting on LinkedIn this week that the company had surpassed production. 2 million cars at the Fremont, California plant.
According to one White House Memorandum From June 28, Tesla also plans to “start production of a new Supercharger device that will allow non-Tesla EV drivers in North America to use the Tesla Supercharger.”
