Tesla on Monday reported a jaw-dropping $ 1.14 billion second-quarter net profit on Monday, results that exceeded analysts’ expectations and marked the first time the company’s quarterly profit (on a GAAP basis) has exceeded three comma threshold. The results pushed stocks up more than 2.2% in after-hours trading.
Tesla was able to beat expectations and record its eighth consecutive quarter of profitability even as it grappled with supply chain issues and losses resulting from its investment in bitcoin. Operating profit was $ 1.3 billion, which increased year-over-year from $ 327 million, driven by volume growth and lower costs , the company said. These positive results were partially offset by increased operating expenses, supply chain issues, lower regulatory credit revenue and the aforementioned bitcoin-related depreciation of $ 23 million.
Supply chain challenges, including the global semiconductor chip shortage and port congestion, were two factors that affected its business in the second quarter. Tesla noted that this will continue to impact operations and its delivery growth rate in 2021.
“With global vehicle demand at record levels, the supply of components will have a strong influence on the growth rate of our deliveries for the remainder of the year,” the company said in its shareholder brief released on Monday. .
Tesla reported revenue of $ 11.96 billion, an increase of almost 100% from the $ 6.04 billion generated in the second quarter of 2020. Second quarter revenue was also higher total of $ 10.39 billion last quarter. Analysts polled by Factset estimated $ 11.4 billion in revenue and $ 600 million in profit.
Tesla’s auto revenue was $ 10.2 billion in the second quarter. Notably, only $ 354 million of that auto revenue came from the sale of regulatory credits, 17% lower than last quarter and the lowest of the past four quarters. Meanwhile, Tesla’s automotive gross margins hit 28.4%, an all-time high for the metric.
Tesla’s second-quarter net income of $ 1.14 billion compares favorably with net income of $ 104 million for the same period last year, a gain of just under 1,000%. That record number is nearly three times its first quarter 2021 net profit of $ 438 million. Tesla’s adjusted second-quarter EBITDA was $ 2.24 billion in the quarter, up from $ 1.21 billion in the same period a year ago, a gain of about 100%.
Quarter-end cash and cash equivalents declined to $ 16.2 billion in the second quarter, according to Tesla, which said the decline was mainly due to net debt and finance lease payments from $ 1.6 billion, partially offset by free cash flow of $ 619 million.
Earlier this month, Tesla said it produced 206,421 vehicles in the second quarter. Of these, the company delivered 201,250 vehicles, almost 9% more than in the first quarter of 2021.