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Tesla reports more than $1 billion in net income during Q2, up tenfold from a year ago

27 July 2021 19:38 (UTC +04:00)

Tesla reported second-quarter earnings after the bell Monday, and it’s a beat on both the top and bottom lines. Shares rose about 2% after-hours. Here are the results, APA reports citing CNBC.

The company reported $1.14 billion in (GAAP) net income for the quarter, the first time it has surpassed $1 billion. In the year-ago quarter, net income amounted to $104 million.

Overall automotive revenue came in at $10.21 billion, of which only $354 million, about 3.5%, came from sales of regulatory credits. That’s a lower number for credits than in any of the previous four quarters. Automotive gross margins were 28.4%, higher than in any of the last four quarters.

Tesla had already reported deliveries (its closest approximation to sales) of 201,250 electric vehicles, and production of 206,421 total vehicles, during the quarter ended June 30, 2021.

The company also reported $801 million in revenue from its energy business, including solar photovoltaics and energy storage systems for homes, businesses and utilities, an increase of more than 60% from last quarter.

While Tesla does not disclose how many energy storage units it sells each quarter, in recent weeks CEO Elon Musk said, in court, that the company would only be able to produce 30,000 to 35,000 at best during the current quarter, blaming the lag on chip shortages.

Tesla also reported $951 million in services and other revenues. The company now operates 598 stores and service centers, and a mobile service fleet including 1,091 vehicles, an increase of just 34% versus a year ago. That compares with an increase of 121% in vehicle deliveries year over year.

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

The company’s cash position decreased about 5% from last quarter, to $16.23 billion. The decline was “driven mainly by net debt and finance lease repayments of $1.6B, partially offset by free cash flow of $619M,” the company said in its earnings statement.

Accounts payable — the amount of money Tesla owes suppliers and other service providers — rose by 13.7% from the previous quarter to $7.56 billion.