Tesla reported earnings after the bell, and the results sent the stock up slightly after 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
The auto industry gross margin came in at 27.9%, down from 32.9% in the previous quarter and 28.4% a year ago, due to the impact of inflation and more competition for batteries and 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.” Overall, the company’s cash and cash equivalents increased $847 million during the quarter. Tesla has made waves among crypto enthusiasts when it announced in early 2021 that it has bought $1.5 billion worth of bitcoins.
With two new plants now located in Texas and outside of Berlin in Germany, Tesla has kept its soft direction of “50% average annual growth in vehicle deliveries”, on the “higher horizon”. five”.
Tesla still counts its hotly-anticipated Cybertruck (announced November 2019), electric Semi truck (announced November 2017), updated Roadster concept (also announced Nov. November 2017) and other speculative projects such as humanoid robots are under development. “
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.
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.