Tesla’s second-quarter earnings report tells a tale of quarterly declines driven by manufacturing issues and year-over-year growth.
The enterprise reported Wednesday A quarterly sales and profit decline due to supply chain constraints, inflation and a prolonged shutdown in China hurt results. The company’s share price rose as much as 4% and then settled around 1.45% in after-hours trading.
Tesla posted revenue of $16.9 billion in the second quarter, compared to $18.8 billion in the first quarter. Its second-quarter revenue numbers were also down from the $17.7 billion it brought in in the fourth quarter of 2021.
Tesla said it made $2.3 billion, or $1.95 per share, in the second quarter, which was also less than the $3.3 billion it made in the first quarter.
Despite the sequential decline, Tesla’s year-over-year results painted a far rosier picture, with revenue up 42% from $11.96 billion in Q1 2021. Earnings also nearly doubled from $1.14 billion -dollars or $1.02 per share it had earned in the same period in 2021.
According to data from Yahoo Finance, analysts expect Tesla to have generated sales of $17.2 billion and earnings per share of $1.85 in the second quarter of 2022. For the second quarter of 2021, Tesla reported revenue of $11.96 billion and earnings per share of $1.45.
The company noted that it continued to make significant progress across the business in the second quarter of 2022, despite facing certain challenges, including limited production and shutdowns in Shanghai for most of the quarter.
The company’s bottom line was pulled in two different directions: It was helped by selling its electric vehicles at a higher price and selling $344 million worth of government loans, while inflation and other costs squeezed its automotive margins. Tesla’s auto margin shrank to 27.9%, compared to 32.9% in the previous quarter and the 28.4% reported in the fourth quarter.
Musk has repeatedly argued that production, not demand, is the main constraint on the company’s growth.
“Right now our problem is very much production,” Musk said during the call. “So we have long lead times — as anyone can tell when ordering a car — if you order a Model Y, it’s going to arrive sometime next year. So this is clearly not an issue (in terms of demand) for many months. For us, our problem is mostly that of production.”
Despite these issues, Musk tried to highlight some of the company’s achievements, including ending the quarter with the highest vehicle production month in its history as its Shanghai plant restarted and ramped up its new facilities in Berlin and Austin .
Tesla also announced that it sold 75% of its Bitcoin holdings this quarter. The company appears to have lost around $150 million on its cryptocurrency bet since its purchase in 2021, selling the coins for $963 million. Tesla said the value of its remaining “digital assets” is $218 million.
Tesla has provided some other updates, e.g. B. maintaining the mid-2023 production start date for the Cybertruck and forecasting a planned increase in the cost of its FSD beta software. The company didn’t issue an update on its electric semitrailer and roadster, both of which were unveiled as concepts in December 2017.