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Tesla share price: uncertainty remains as Q2 revenue surges 98%

It was another bumper quarter for the electric automaker, with Tesla beating analyst expectations on the top and bottom-line.

Tesla – the controversial electric automaker may be accused of many things – but growing slowly is likely not one of them.

On the top-line, the automaker grew its revenues 98% in the second quarter, reporting total revenues of $11.9 billion in the period. That was firmly ahead of analyst estimates, who, were on average, expecting total Q2 revenues of $11.36 billion.

The lion's share of that revenue was driven by strong automotive sales, which came in at $10.2 billion for the quarter, up 97% year-on-year.

The company’s reliance on regulatory credits remains lumpy, with revenue derived from the sale of these credits coming in at $354 million, down 17% from the year prior.

Production and delivery performance

This sales performance was built on record Q2 production and delivery numbers.

Total vehicle production came in at 206.4 thousand while total deliveries were 201.3 thousand, an increase of 151% and 121%, respectively.

Production of the automaker's higher margin electric vehicle came back online during the quarter, with 2,340 Model XS/Xs produced in the quarter. 204,081 Model 3/Ys were produced in the second quarter.

This all translated into strong earnings, with Tesla reporting triple digit growth across a number of key earnings measures. Illustrating that point, total gross profits were up 128% to $2.88 billion, income from operations rose 301% to hit $1.312 billion; while net income (GAAP) reached $1.14 billion and earnings per share (EPS) came in at $1.02 (GAAP) and $1.45 (non-GAAP).

That was a solid beat on what analysts were expecting, with the average analyst estimate sitting at adjusted earnings (EPS) estimates of 97 cents per share.

Tesla share price in focus

Despite beating expectations across the top and bottom-lines, investors responded with little enthusiasm to the results: the stock rose just 0.99% in after-hours trade. That built on a solid session, which saw the Tesla share price gain 2.21% to finish out the day at $657.62 per share.

These results came as the company continues to experience broader, macroeconomic challenges, with the company noting that:

'Supply chain challenges, in particular global semiconductor shortages and port congestion, continued to be present in Q2.'

'With global vehicle demand at record levels, component supply will have a strong influence on the rate of our delivery growth for the rest of this year.'

Other bits and pieces

Here are some other highlights from Tesla’s second quarter results:

  • The company booked a $23 million impairment charge related to its Bitcoin exposure
  • The company’s recently cited expectation for a 50% annual growth rate, in terms of vehicle deliveries, over the mid-term was reiterated
  • Tesla CEO – Elon Musk – said he may skip future earnings calls, saying: ‘I will no longer default to doing earnings calls...I think going forward I will most likely not be on earnings calls.’

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