Tesla’s Q2 Net Income Soars Tenfold to $1 Billion

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Tesla Inc (NASDAQ:TSLA) reported a second-quarter net income of $1.14 billion, nearly ten times the $104 million reported in Q2 last year. It is the first time the firm has reached the billion-dollar mark in any quarter.

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Q2 2021 hedge fund letters, conferences and more

Automotive Business

According to CNBC, Tesla reported $10.21 billion in automotive revenue, “of which only $354 million, about 3.5%, came from sales of regulatory credits.” Automotive gross margins hit 28.4%, “higher than in any of the last four quarters.”

The result stems from the 201,250 electric vehicle deliveries and the 206,421 produced during the quarter, which ended on June 30.

During the first quarter Tesla only sold a handful of its two most profitable models, the Model S and Model X. In addition, these units were stock vehicles that were quickly sold off to prepare the ground for the launch of their renewed versions, which are not yet ready for sale.

In Q2, the company manufactured 180,338 units of the Model 3 and Model Y, while deliveries reached 182,780 units. Globally, Tesla produced 180,338 vehicles –Model 3 and Model Y– and delivered 184,800.

This means a 110% growth compared to the same period last year, as well as a 2% increase compared to Q4 in 2020.

Tesla seized the earnings disclosure to announce several novelties, including the launch schedule for the renewed Model S, which is set to be released earlier than expected, with the Model X arriving afterward.

In addition, Tesla has confirmed that the Model 3 became the best-selling premium sedan on the planet –surpassing the Audi A6, the BMW 3 Series, or the Mercedes-Benz E-Class. This is possibly due to the vehicle’s enormous success in China, the U.S., and Europe.

Other Results

CNBC also reports that Tesla’s energy business accrued $801 million in revenue, more than 60% of last quarter’s report.

The company is betting on solar photovoltaic systems, as well as energy storage systems whose production output was predicted by Elon Musk to reach between 30,000 and 35,000 units during the quarter.

“A $23 million impairment related to the value of its bitcoin holdings was reported as an operating expense under ‘Restructuring and other.’”

Still, the company’s cash position shrank by nearly 5% from last quarter to $16.23 billion, “driven mainly by net debt and finance lease repayments of $1.6B, partially offset by free cash flow of $619M,” as reported in its earnings statement.

Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders' families.