Tesla Inc update
Sign up for myFT Daily Digest and be the first to learn about Tesla’s news.
Data released late on Monday showed that Tesla overcame serious supply chain problems in the most recent quarter, increased profit margins, and pushed revenue higher than Wall Street’s expectations.
Elon Musk’s relationship with Wall Street often became tense during the company’s frequent growth pains, and he used this optimistic moment to reveal that he would no longer participate in most Tesla earnings conference calls.
The CEO’s combative defense and often exaggerated predictions of the American electric car manufacturer have made these calls a favorite of individual investors, providing the most frequent insight into his ideas.
Tesla’s share price rose slightly by 1% in after-hours trading, as the company reported that despite the severe challenge of restricting production, it has made progress in achieving its profit target.
Revenue was only less than US$12 billion, higher than the US$11.2 billion expected by most analysts, and an increase of 97% over the same period last year when the pandemic caused factory closures and hindered its business.
The company’s most important automotive business gross margin reached 28.4%, nearly two percentage points higher than the first three months of 2021. Although its sales regulatory credit revenue was US$354 million, which was less than US$514 million, it still achieved growth in the previous quarter.
Musk spent most of his last regular earnings conference call with investors and analysts who complained about the difficulty of achieving large-scale manufacturing. Commenting on what he called “hundreds” of start-ups in the auto industry, he said: “It is amazing that Tesla did not go bankrupt because of mass production, because everyone else did.”
Tesla has announced strong Although new car deliveries in the second quarter Supply chain issues And suffered setbacks in China. The company said on Monday that deliveries reached 201,304 vehicles, higher than previous estimates and most analysts’ forecasts of 195,000-200,000 vehicles.
As Tesla benefited from higher sales and controlled its operating costs, operating profit tripled from a year ago, reaching $1.3 billion. Despite paying $176 million in fees to reflect what the company said may be paid under Musk’s stock-based compensation plan, this progress has occurred, reflecting the company’s possibility of achieving new performance goals.
Chief Financial Officer Zach Kirkhorn said that Tesla has increased its core car profit margin by 10 percentage points in the past two years, even though its average selling price has fallen by 10%.
The latest data includes $23 million in impairment charges on Bitcoin assets held by Tesla, reflecting the decline in cryptocurrency prices at the end of the second quarter. When the price rises, the company will not revalue its bitcoin holdings upwards, which means that its income statement will not reflect the recent strong rebound in cryptocurrency unless it actually liquidates part of its holdings.
Net income increased from 140 million U.S. dollars or 10 cents per share in the previous year to 1.14 billion U.S. dollars, or 1.02 U.S. dollars per share. According to Wall Street’s assessment of the company, the company excludes stock-based compensation and Tesla’s earnings per share reached $1.45, compared with analysts’ forecast of 96 cents.