What Tesla’s quarterly report told us
The report of electric car manufacturer Tesla Inc. (TSLA) for the second quarter did not cause a significant movement in quotations on July 20. Nevertheless, the report contains essential signals for long-term investors. The primary password is profit growth above Wall Street expectations. Tesla’s fast sales growth means that the company is making more money and has more cash, making the company more potent as a large-scale, profitable automaker. In the past quarter, Tesla’s revenue grew 41% year-on-year to $16.94 billion, below forecasts. At the same time, earnings increased by 56.5% to $2.27 per share — better than expected.
Tesla increased car deliveries by 27% compared to the same period last year, with total net profit almost doubling to $2.3 billion. The margin of the Tesla automotive segment was about 28%, slightly less than 28.4% in Q1 2021, but it is a high indicator, especially against continuing problems with supply chains. All this allowed Tesla to increase its cash reserve to $18.3 billion. This amount is more than enough for further expansion of production. Currently,
Tesla plans to increase the supply of cars by 50% per year for many years. To do this, the company is expanding production capacity at factories in Shanghai (China) and Fremont (USA). Tesla also continues to increase production at new plants in Texas and Berlin. Tesla continues to develop and test the main future growth drivers: robot taxi, Cybertruck pickup truck, and Tesla Semi tractor. Thus, Tesla retains long-term prospects and has significant financial, technological, and production potential to maintain leadership in the electric vehicle market.
