Tesla beat Wall Street expectations on Monday as it reported its most profitable quarter despite the production complications caused by microchip shortage.
Tesla posted total revenue of $11.958 billion in the second quarter of the year, a 98% increase year-on-year and beats an expected $11.36 billion revenue.
The increase in revenues was due to substantial growth in vehicle deliveries. Automotive revenues rose by 97% to $10.206 billion.
The company’s gross profit increased by 128% to $2.884 billion. The operating income improved to $1.3 billion, an 11.0% operating margin.
The automaker reported $1.14 billion in (GAAP) net income, more than double the $438 million it made during the first quarter of 2021. This is the first time, Tesla’s quarterly profits exceeded $1 billion in its history.
The earnings per share(adjusted) stood at $1.45, compared to an expected $0.974 per share.
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Tesla said it increased its profitability mainly due to volume growth and cost reduction.
The quarter-end cash and cash equivalents decreased to $16 billion in Q2, driven mainly by net debt and finance lease repayments of $1.6 billion according to the company.
In the second quarter of 2021, Tesla broke new and notable records as it produced and delivered over 201,250 vehicles. In the previous quarter, Tesla delivered 184,800-vehicle, which was a record at the time.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
