Tesla Q2 2021 earnings call summary: Profits topped $1B

Tesla’s remarkable point to date since 2003, is Q2 2021 when the company’s profit topped $1.14 billion. The CEO and founder of Tesla are now at such a point that this is the last earning call summary that Elon Musk will be addressing. Compared to $104 million profit last year, there is 98% growth for the company.

Tesla, Inc. TSLA Q2 2021 Earnings Call Transcript - Rev
Image credits- Rev.com

While many things were unveiled in the earnings call which was live on the official website, at 5:30 pm ET/2:30pm PT/11:30pm CET. Elon Musk mentions that chip shortage is beyond Tesla’s control. He said, “The chip shortage remains quite serious.  The chip supply is fundamentally the governing factor on our output.”

Key takeaways

Below are the key takeaways from the earnings call. Some of them were already known, while most of it cleared many questions investors have been having.

  • Q2 2021 is the eighth consecutive profitable quarter for Tesla. Despite reaching Wall Street’s expectations, the stocks have risen only 2.28% and are expected to rise in the coming months.
Stamping press at Gigafactory Texas. Image credits- Tesla
  • Elon Musk starts the earnings call saying this Q2 is a record quarter in production, income, and deliveries. The current market is infectious to EVs and the EV market is moving forward.
  • Musk was seen to be at the Giga Texas and congratulates the team for successfully building it. He said, “There’s nothing a year ago, and there’s a mostly complete large factory a year later,”
  • Then the talks about chip shortage challenges come. Though Musk is content that the supplier and team were able to handle the situation till now, it is beyond Tesla’s control now.
  • He further notes that the FSD subscription is released, and is expected to have higher rates as the software is updated.
  • Tesla is expected to have a backup plan for the 2170 battery cells and non-structural pack. The company aims to use the 4680 battery cells for scale production. Model Y is expected to go live in Giga Texas. He said, “The Model Y line in Texas and Berlin will look mostly like the Model Ys we make, but there will be substantial differences. The Model Y in Berlin will have a cast rear body and cast front body. We’re going to structural packs,”
Tesla Giga Berlin paint shop. Image credits- Tesla
  • When the other executives take over, initially, Tesla Chief Finance Officer Zachary Kirkhorn talks about financial benefits. Notes that the upcoming Q3 and Q4 will be remarkable as well.

Answering investors questions

  • Then Elon Musk and other executives answer Investor’s questions. It is to note that the manufacturing of Cybertruck and Semi will be affected depending on cell availability. Tesla expects to see an improved situation on the availability of cells sometime next year.
  • The company also plans to boost Powerwall production if there is excess availability of cells. Tesla doesn’t use Cobalt in LPF packs anymore and uses iron-based cells.
  • Superchargers for non-Tesla cars would be a simple app-based charging system. They will be charged on time, and Tesla will be smarter in terms of how it charges for the electricity.
  • Another notable milestone for Tesla is with 4680 battery cells. Musk says that the batteries are reliable and could be used according to their test results. It is only a matter of availability of materials and dealing with mass production challenges. By next year, Tesla plans to hit an annualized rate of 100 GWh per year.

Regardless of various controversial statements, Tesla is considered the leader of electrification and autonomy. Elon Musk himself admitted to that.