Tesla TSLA earnings in the second quarter of 2022

Tesla reported earnings after the call, and the results lifted the stock about 2% after hours.

  • Earnings per share (EPS): $2.27 (adjusted) vs. $1.81 expected, according to Refinitiv.
  • Income: $16.93 billion vs $17.1 billion expected, according to Refinitiv

Gross profit from the automotive industry was 27.9% compared to 32.9% last quarter and 28.4% a year ago, driven by inflation and increased competition for battery cells and other components used in electric vehicles.

The company generated $344 million in revenue from automotive regulatory loans in the second quarter, the company said in a report. shareholder deck. This is $10 million or almost 3% less than the same period in 2021.

Tesla expanded its charging infrastructure beyond its stores and service centers, reporting 709 stores and service centers in the quarter and 3,971 Supercharger locations (with a total of 36,165 Supercharger connections) in the second quarter. These figures reflect a 19% increase in the number of stores and service centers compared to last year and a 34% increase in the number of charging stations.

The company provided limited information about its investments and cryptocurrency sales, writing: “As of the end of the second quarter, we have converted approximately 75% of our bitcoin purchases into fiat currency. Q2 conversions added $936 million in cash to our balance sheet. Tesla made a splash among crypto enthusiasts when it announced in early 2021 that it has bought $1.5 billion worth of bitcoins.

At the beginning of this month, Tesla reported vehicle deliveries of 254,695 electric vehicles for the period ended June 30, 2022, representing a 27% increase year-on-year quarter but a sequential decrease of 18%. Deliveries are the closest approximation to sales that Tesla discloses. His Model 3 and Model Y vehicles accounted for 93% of those deliveries.

Russia’s brutal incursion into Ukraine and the Covid outbreaks in China have exacerbated the ongoing shortages of semiconductors and components, as well as other supply chain problems. Covid restrictions in Shanghai forced Tesla to temporarily suspend or limit production at its factory in the second quarter of 2022.

CEO Elon Musk also mourned high start-up costs at new plants in Austin, Texas and Grünheide in Brandenburg, Germany. During an interview with Tesla Owners Silicon Valley, the company’s acknowledged fan club, Musk said the two new plants “are giant money-making furnaces.”

The Director General also announced downsizing in June.

Tesla’s crypto assets are also likely to have dropped substantially in value, depending on how the company sold them. This was stated by Barclay analyst Brian Johnson. on Monday that he expects Tesla to lock in the impairment to around $460 million due to bitcoin refuses.

On the other hand, Tesla recently marked a major milestone when an employee posted on LinkedIn this week that the company has outperformed production. 2 million vehicles at its Fremont, California plant.

According to White House memo Starting June 28, Tesla also plans to “begin production of new supercharger hardware that will enable non-Tesla electric vehicle drivers in North America to use Tesla superchargers.”