Tesla reported earnings after the bell, and the results sent the stock up about 2% after hours.
- Earnings per share (EPS): $2.27 (adjusted) vs $1.81 expected, according to Refinitiv
- Revenue: $16.93 billion, vs $17.1 billion expected, according to Refinitiv
Automotive gross margin was 27.9%, down from 32.9% last quarter and 28.4% a year ago, impacted by inflation and increased competition for battery cells and other components that go into electric vehicles. Automotive revenue accounted for $14.6 billion of the company’s total, including $1.47 billion from services and other revenue, and $866 million from the company’s energy segment.
The company generated $344 million in automotive regulatory credit revenue in the second quarter, the company said in its shareholder filing. That’s down $10 million or nearly 3% from the same period in 2021.
Tesla has grown its charging infrastructure more than its stores and service centers, reporting 709 store and service locations for the quarter and 3,971 Supercharger locations (with 36,165 total Supercharger connections) in the second quarter. These figures represented a 19% growth in the number of store locations and service centers year-on-year and a 34% growth in the number of charging points.
The company provided limited details on its cryptocurrency investments and sales, writing, “At the end of the second quarter, we converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in the second quarter added $936 million of cash to our balance sheet. “Tesla made waves among crypto enthusiasts when it announced in early 2021 that it had purchased $1.5 billion worth of bitcoin.
With two new factories now in place in Texas and outside Berlin in Germany, Tesla kept its soft forecast for “50% average annual growth in vehicle deliveries” over a “multi-year horizon”.
Earlier this month, Tesla reported vehicle deliveries of 254,695 electric cars for the period ending June 30, 2022, showing 27% growth from the prior year quarter, but a sequential decrease of 18. %. Deliveries are the closest approximation to Tesla’s disclosed sales. Its Model 3 and Model Y vehicles accounted for 93% of those deliveries.
Russia’s brutal invasion of Ukraine and the Covid outbreaks in China have exacerbated ongoing shortages of semiconductors and parts, as well as other supply chain issues. Covid restrictions in Shanghai forced Tesla to temporarily suspend or limit production at its factory there during the second quarter of 2022.
CEO Elon Musk also lamented the high costs of starting production at new factories in Austin, Texas, and Grünheide in Brandenburg, Germany. In an interview with Tesla Owners Silicon Valley, a company-recognized fan club, Musk said the two new factories “are gigantic money-making furnaces.”
The CEO also announced staff reductions in June.
On the bright side, Tesla recently marked a milestone with an employee posting on LinkedIn this week that the company surpassed production of 2 million vehicles at its factory in Fremont, California.