Tesla Reports Record Profit Of $ 1.14 Billion, But Chip Shortage Problem
Tesla(TSLA) expectedly beat Wall Street estimates for second-quarter earnings and earnings. However, due to problems with a shortage of battery materials and microcircuits, Tesla will not begin mass production of the Cybertruck until 2022. The start of Semi Truck production also has until next year.
Tesla (TSLA) shares, which lagged behind the general market, rallied slightly after reporting financial results for the second-quarter ending in June.
Tesla reports beat expectations amid growing electric vehicle shipments.
After the close of trading on Monday, Tesla expectedly reported strong results, given the comparison with last year – when shipments and financial results of the company were affected by temporary plant closures due to the pandemic.
Earlier on July 2, Tesla reported sales of 201,250 electric vehicles (with actual delivery to customers) in the second quarter, the lion’s share of which are Model 3 and Model Y deliveries.
This figure contrasts last year’s 90,650 units but is below the market average of 207,000.
The company does not disclose sales statistics for its electric vehicles by region.
Tesla on Monday announced a record net profit of $ 1.14 billion, up from $ 104 million in the second quarter of last year.
The company’s graph below shows the dynamics of changes in Tesla’s net income (net income) and EBITDA profit (before tax) quarterly, starting from the third quarter of 2008.
The quarterly profitability (percentage of profit after all expenses) of Tesla car sales was 28.4%, higher than in the last four quarters.
Tesla reported earnings per share of $ 1.45, above the analyst average of $ 0.98.
The company’s total revenues grew 88% to $ 11.96 billion, higher than the forecasted $ 11.30 billion. Tesla’s quarterly revenues and earnings statistics for the last two years are available here.
Tesla’s total car revenue was $ 10.21 billion, of which only $ 354 million, about 3.5%, came from selling regulatory green energy loans to other manufacturers.
Market analysts said that the decline in the share of the revenue from the sale of statutory loans, while the total revenue rises, could be a good sign – Tesla is decreasing its dependence on them.
Revenues from solar energy systems and solar energy storage systems SolarCity rose 60% more than in the last quarter to $ 801 million. However, according to CEO Elon Musk, their production is limited due to a shortage of chips. Their scarcity is a global problem.
Tesla also received $ 951 million in service fees. Now the company has 598 stores and service centers and a taxi fleet of 1,091 cars, which is only 34% more than a year ago. In comparison, the volume of car shipments increased by 121% over the previous year.
In its report, Tesla also wrote off $ 23 million due to the depreciation of bitcoins, which it bought for $ 1.5 billion in February this year. In the first quarter, Tesla recorded $ 272 million in digital asset sales.
Other messages from Tesla executives during the financial statement conference include:
- The rate of production growth is negatively affected by the shortage of supplies of materials for batteries and the lack of microcircuits;
- Tesla has no plans to produce its microcircuits;
- New Tesla batteries have not yet been put into production because the last of the technical problems have not ;
- The exact dates of mass production of new generation batteries and the long-awaited Cybertruck have not yet been announced.
Cyber tricks are likely to begin production in late 2021, with mass production no earlier than 2022.
Tesla plans to begin limited production of the Model Y SUV this year at construction in Texas and Germany.
Tesla has postponed the production of Semi trucks until 2022 to focus on starting factories and solving supply problems.
Tesla shares are down 25% from their January 8 high and 6.8% YTD, after up 88% in 2020.
