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Tesla has released their Q2 2021 earnings, after shipping 200,000 Tesla cars during the last quarter.
The company was expected to earn $11.532 billion in revenue and earnings of $0.94 per share but exceeded expectations with revenue of $11.958 billion and earnings of $1.45 per share (non-GAAP).
“In the second quarter of 2021, we broke new and notable records. We produced and delivered over 200,000 vehicles, achieved an operating margin of 11.0% and exceeded $1B of GAAP net income for the first time in our history.”
Tesla’s total revenue grew 98% YoY in Q2. This was primarily achieved through substantial growth in vehicle deliveries, as well as growth in other parts of the business. At the same time, vehicle ASP declined by 2% YoY as Model S and Model X deliveries were reduced in Q2 due to the product updates and as lower ASP
China-made vehicles became a larger percentage of Tesla’s mix.
Tesla also reported $801 million in revenue from its energy business, including solar energy for homes and businesses and storage for utilities, an increase of over 60% from last quarter.
Operating income increased YoY mainly due to volume growth and cost reduction. Positive impacts were partially offset by growth in operating expenses including increased SBC, Model S/X ramp (negative margin in Q2), additional supply chain costs, lower regulatory credit revenue, Bitcoin-related impairment of $23M and other items.
This resulted in free cash flow of $619M, though Tesla used much of this to fund debt and finance lease repayments of $1.6 billion.
See the full report below: