Tesla’s second-quarter earnings were released on Monday, and the company exceeded expectations and grew by ten times from last year. After-hours, the stock gained around 2%.
The company’s (GAAP) net income for the quarter two was $1.14 billion, the first time it has crossed $1 billion. Net income was $104 million in the previous quarter.
Sales of regulatory credits accounted for just $354 million, or approximately 3.5 percent, of total automotive revenue of $10.21 billion. This is a lower credit number than any of the prior four quarters.
Gross margins in the automotive industry were 28.4 percent, greater than in any of the previous four quarters.
During the quarter ending June 30, 2021, Tesla reported 201,250 electric car deliveries and 206,421 total vehicle deliveries (its closest estimate to sales).
The company’s energy division, which includes solar photovoltaics and energy storage systems for homes, companies, and utilities, generated $801 million in sales, up more than 60% over the previous quarter.
Deduction in Energy Units
While Tesla does not reveal how many energy storage units it sells each quarter, CEO Elon Musk recently stated in court that the firm will only be able to build 30,000 to 35,000 units at most during the current quarter, blaming the delay on chip shortages.
In addition, Tesla reported $951 million in income from services and other sources. The firm currently has 598 shops and service centres, as well as a 1,091-vehicle mobile service fleet, which is up merely 34% from a year ago. In comparison, car deliveries increased by 121 percent year over year.
Cash Position
The company’s cash position fell 5% from the previous quarter to $16.23 billion. The drop was “driven primarily by $1.6 billion in net debt and financing leasing repayments, slightly offset by $619 million in free cash flow,” according to the company’s results statement.
Tesla’s accounts payable, or the money it owes suppliers and other service providers, increased by 13.7 percent to $7.56 billion in the third quarter.
Backlash from China
Tesla experienced a backlash from Chinese consumers, recalls in China and the United States, and delayed delivery of the high-performance version of its flagship sedan, the Model S Plaid, during the quarter, among other obstacles.
Cyber Truck and Battery Cells
Institutional and retail investors wanted to know when Tesla expects to start commercial production of its Cybertruck and bespoke battery cells, as well as how the firm would deal with persistent component shortages and increased raw material costs, which Musk has previously lamented.
Cybertruck manufacturing will begin at Tesla’s new factory in Texas by the end of 2021, according to Tesla Vice President of Vehicle Engineering Lars Moravy. Musk stressed that this will be a limited-run car at first, and that ramping up manufacturing to a large number will be difficult owing to the vehicle’s unique design. Tesla stated in its shareholder presentation that manufacturing of the Cybertruck will follow that of the Model Y in Texas.
Musk on regulating Airbags and supply chain difficulties
Musk said on Monday’s shareholder call that procuring enough modules that regulate the airbags and seatbelts in Tesla vehicles was a “huge problem this quarter.” The company’s manufacturing in both Fremont, California, and Shanghai was hampered by a scarcity of supplies.
Many Tesla enthusiasts also wonder why the company doesn’t just build its own semiconductors to prevent shortages. He stated that Tesla will work with suppliers to resolve supply chain concerns.
Tesla has curtailed its manufacturing of Powerwalls, and its Megapack battery systems for use at power stations are sold out until the end of next year, Musk said, because the firm utilises many of the same semiconductors and battery cells in automobiles as it does in energy storage devices.
Musk stated Tesla will “overshoot” on cell supply for automobiles as a method to handle supply chain difficulties for both cars and energy storage goods, and that any surplus would be routed to producing Powerwalls and Megapacks.
Drivers of non-Tesla electric vehicles will be able to use Tesla’s Supercharger DC fast-charging facilities. The company’s objective, according to Musk and Drew Baglino, senior vice president of powertrain and energy engineering, is to extend its charging network to the point that drivers will not have to wait longer to charge their vehicles on the road.
