Tesla reported earnings after the bell, and the results sent shares up about 2% after hours.
- Earnings per share (EPS): $2.27 (adjusted) vs. $1.81 expected, according to Refinitiv
- Revenue: $16.93 billion, versus $17.1 billion expected, according to Refinitiv
The auto industry’s gross margin came in at 27.9%, down from 32.9% last quarter and 28.4% a year ago, hurt by inflation and greater competition for battery cells and other components that go into electric vehicles .
The company generated $344 million in auto regulatory credit revenue in the second quarter, the company said in a filing with shareholders. That’s down $10 million, or nearly 3%, from the same period in 2021.
Earlier this month, Tesla reported vehicle shipments of 254,695 electric cars for the period ending June 30, 2022, which represented a 27% increase from the year-ago quarter, but a sequential decline of 18%. The deliveries are the closest approximation of sales disclosed by Tesla. Model 3 and Model Y vehicles made up 93% of those deliveries.
Russia’s brutal invasion of Ukraine and outbreaks of Covid in China have exacerbated ongoing shortages of semiconductors and parts, along with other supply chain hiccups. Covid restrictions in Shanghai have forced Tesla to temporarily halt or limit production at its factory there in the second quarter of 2022.
CEO Elon Musk also complained about the high costs of starting production at new factories in Austin, Texas and Grünheide in Brandenburg, Germany. During an interview with Tesla Owners Silicon Valley, the company’s recognized fan club, Musk said the two new factories “are giant money ovens.”
The CEO also announced staff cuts in June.
Tesla’s cryptocurrency holdings are also likely to have declined significantly in value, depending on how the company trades them. Barclays analyst Brian Johnson said Monday that he expects Tesla to write down roughly $460 million due to declines in bitcoin.
On the bright side, Tesla recently hit a milestone with an employee posting on LinkedIn this week that the company had surpassed 2 million vehicles at its Fremont, California plant.
According to a June 28 White House memo, Tesla also plans to “begin production of new Supercharger equipment that will allow non-Tesla EV drivers in North America to use Tesla Superchargers.”
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