Tesla Reports Q2 Net Income Of More Than $1b , Up Ten Times The Figure From 2020

Electric vehicle company Tesla reported its earnings on Monday. The Elon Musk-owned company has had quite an impressive quarter beating the estimates of analysts hands down. The reports pushed the company’s shares by 2 percent after hours.

Tesla reported earnings of $1.45 as against the 98 cents per share adjusted that analysts had expected. The company published revenue of $11.96 billion beating $11.30 billion that was expected, according to Refinitiv. The company also published 1.14 billion in (GAAP) net income for Q2, and it is pertinent to know that this is the first time that the EV company’s net income has surpassed $1 billion.

Tesla has become one of the electric vehicle companies to reckon with and stands at the forefront of a handful of other electric vehicle companies. Earlier this year, the company announced its decision to start accepting Bitcoin as a means of payment but this was brought to an abrupt end shortly after due to concerns around how Bitcoin was mined. Quite recently, CEO Elon Musk while speaking at a recently held conference said that the company might restart accepting Bitcoin soon. Tesla’s involvement in Bitcoin may be of the quite inconsequential reasons for a great quarter.

The company’s overall automotive revenues stood at $10.21 billion. Out of this, $354 million, which constitutes about 3.5 percent, came from sales of regulatory credits. This is quite impressive as it is a lower number of credits when juxtaposed with the number of credits from other quarters. Automotive gross margins, on the other hand, came in at 28.4 percent, this figure is higher than the figures from the last four quarters.

The EV company already reported that the quarter ended June 30, 2021, saw the production of 206,421 EVs and the deliveries of 201,250 EVs.

The company’s energy business also did great. It reported revenue of $801 million which signifies an increase of more than 60 percent compared to the last quarter. For Services and Other Revenue, Tesla reported $951 million. Tesla is operational in 598 stores and service centers and boasts of a mobile service fleet of 1,091 vehicles.

After the company stopped accepting Bitcoin as a means of payment, Elon Musk disclosed that the company had no plans of selling off its Bitcoin holdings. The company reported a $23 million impairment related to the value of its Bitcoin holdings as an operating expense under the heading of “Restructuring and other.”

Although faced with a handful of challenges especially the global chip shortage, the EV company recorded an impressive quarter.

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