Electric vehicle and clean energy company Tesla reported net income of $1.14 billion in the second quarter.
The company’s July 26 earnings report show Total revenue in the second quarter increased by 98% year-on-year, from US$6 billion in 2020 to US$11.9 billion this year. Tesla attributed most of its growth to the surge in demand for its electric vehicles and stated:
“In the second quarter of 2021, we broke a new significant record. We produced and delivered more than 200,000 vehicles, achieved an operating profit margin of 11.0%, and exceeded GAAP net income of $1B for the first time in our history .”
The company also generated quarterly profits of $1.02 per share.
The company stated that the increase in operating expenses and the $23 million in impairment losses related to Bitcoin partially offset total revenue.
Since Tesla considers its Bitcoin an “intangible asset”, accounting rules require the company to report Impairment loss When the price of an asset is lower than its cost basis. However, Tesla does not need to report the appreciation of the underlying asset before the position is realized through the sale.
The report also showed that Tesla did not buy or sell any digital assets in the second quarter.Therefore, Tesla’s only cryptocurrency purchase is still its Purchased 1.5 billion USD of BTC in the first quarter, The company also honored $272 million In the same quarter.
Tesla’s net income of $1.14 billion was calculated using Generally Accepted Accounting Principles (GAAP), which is a set of generally accepted accounting rules for financial reporting, such as expense matching and revenue recognition.
Non-GAAP data, which excludes irregular or non-cash expenses such as depreciation, one-time balance sheet adjustments and acquisitions, estimates that the company has revenues of $1.6 billion and earnings per share of $1.45.
At the “The ₿ Word” virtual conference held on July 22, Tesla CEO Elon Musk refuted rumors that the company might sell its shares in the near future and mocked its possibility Resume accepting BTC payments It’s an electric car.
Musk also revealed for the first time that his aerospace company SpaceX holds BTC, Emphasizing that Tesla and SpaceX have no plans to sell:
“We don’t sell any bitcoins, nor do I sell anything personally, and SpaceX doesn’t sell any bitcoins either.”