Here’s what Tesla’s Q2 earnings report tells us

Tesla Inc. (NASDAQ: TSLA) reported its financial results for the second quarter on Monday that beat Wall Street estimates as sales jumped close to 100%. Shares of the company were more than 2% up in after-hours trading.

“Public sentiment and support for electric vehicles seems to be at a never-before-seen inflexion point,” Tesla said in a letter to investors.

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The future outlook is expected on the earnings call scheduled for 05:30 EDT that you can listen to live here.

Q2 financial performance

Tesla said its net earnings in the second quarter printed at $1.14 billion that translates to $1.02 per share. In the same quarter last year, its net earnings were capped at a sharply lower $104 million or 10 cents per share.

Adjusted for non-recurring items, the electric car manufacturer earned $1.45 per share versus the year-ago figure of 44 cents per share. Tesla valued its revenue at $11.96 billion in Q2 that represents a 98% annualised growth.

According to FactSet, experts had forecast the company to post $11.51 billion of sales and 94 cents of adjusted EPS. Tesla also beat on the top and bottom line in the prior quarter (Q1) as well.  

Deliveries and other notable figures

Earlier this month, Tesla said it produced 206,421 vehicles in total in the second quarter and delivered 201,250 vehicles. Automotive revenues in Q2 came in at $10.21 billion, with regulatory credits accounting for $354 million only. Compared to the previous four quarters, credits sales were down in Q2, but automotive gross margins stood at a higher 28.4%.

Other notable figures in the earnings report include a 60% annualised growth in revenue from energy business to $801 million. Tesla’s bitcoin investment resulted in a $23 million impairment in the second quarter. The Palo Alto-based company valued net debt and finance lease repayments at $1.6 billion that resulted in a 5% sequential decline in its cash position to $16.23 billion.

Production plans

Tesla said Model Y production will begin in Berlin and in Austin this year but delayed the production of Tesla Semi to 2022 on “limited availability of battery cells and global supply chain challenges”. The Austin factory will start producing its Cybertruck as well after Model Y.  

Tesla lost market share significantly in two of its largest three markets – China and Europe, in the second quarter.