A lot of big tech companies will report their Q2 results later this week. However, perhaps the most anticipated quarterly report is that of Tesla’s (NASDAQ: TSLA). The car company has continued to report record-breaking profits quarter after quarter, with many speculating just how high Tesla’s Q2 numbers would be. As it turns out, the electric car maker reported another record quarter in terms of both deliveries and net profits.
Shareholders and analysts alike were more than impressed with the company after it released its Q2 results on Monday. The main issues for Tesla are trying to introduce new models and securing parts for all its vehicles. Tesla also delayed its semitrailer truck, pushing back the first deliveries until 2022. The main issues seem to be a lack of battery-cell supplies as well as difficulties in securing more chip supplies.
Otherwise, Tesla’s Q2 was an undeniable success. The company reported over $12 billion in revenue, close to double that of Q2 2020’s revenues. Profits also soared to $1.1 billion, marking the eighth quarter in a row that Tesla saw a positive net income. This is almost more than double the $600 million profit target that Wall Street was expecting on average.
Total vehicle production grew to 206,000, which also is more than double that of a year ago. That’s also despite the ongoing chip shortage, which has forced many car companies to reduce their car output. However, even Elon Musk admitted that Tesla is still limited by the current chip crisis.
“For the rest of this year, our growth rate will be determined by the slowest part in our supply chain. Chip supply is fundamentally the governing factor on our output,” said Musk. “That limited our production severely world-wide.” He added that Tesla plans to sidestep the current chip shortage by using alternative materials as opposed to the regular silicon that most chips are made from.
Besides that, Musk also said that he’s giving up on traditional investor conference calls. He said that unless there’s something really important to cover, he won’t really be participating any more. That’s generally not a good move for the traditional Fortune 500 CEO, but given that Musk’s comments have gotten him in trouble with regulators before, it might be a good idea this time around.
Shares were already up 2.2% in anticipation of the Q2 results, with prices continuing to rise around 1.0% in pre-market trading. Tesla also would have seen a mild valuation gain on Monday thanks to its Bitcoin holdings. The company still owns around $1.3 billion in Bitcoin, which saw more than a 13% price jump on Monday.
Tesla Company Profile
Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, Model 3 in 2017, and Model Y in 2020. Global deliveries in 2019 were 367,656 units. Tesla went public in 2010 and employs about 50,000 people. – Warrior Trading News
