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Tesla beats on earnings


Tesla beats earnings

The e-car goliath Tesla(Ticker: TSLA) reported its second-quarter earnings after the closing bell of the US stock exchange on Wednesday. Beating analysts’ expectations in EPS, but misses on revenue.


Total revenues:

$16.934 billion vs $11.958 billion in Q2-2021, up 42% year-over-year


Adjusted EPS:

$2.27 vs estimated $1.83


Disclaimer - Nothing in this post is financial advise


Tesla almost doubled its profit in the second quarter

The electric carmaker earned $2.3 billion on its bottom line, up 98 percent from the same period last year. However, the result is still significantly lower than its reported 3.3 billion dollars in the previous quarter.

Analysts had nevertheless expected lower profits.


Margin increased

The company also reported it has achieved an operating margin of 14.6%,

among the highest in the industry, while still facing limited production and shutdowns in Shanghai.


1,000 vehicles produced in one week

Tesla reported a positive free cash flow of $621M and ended the quarter with the highest vehicle production month in Tesla's history. With its Gigafactory in Berlin producing more than 1,000 vehicles in one week.


Total deliveries in Q2-2022 were 254,695 vs 201,304 in Q2-2021, up 27% year-over-year.


Model S/X deliveries:

16,162 in Q2-2022 vs 1,895 in Q2-2021, up 753%


Model 3/Y deliveries:

199,409 in Q2-2022 vs 238,533 in Q2-2021, up 20%


Tesla sold its Bitcoin(partially) — keeps its Dogecoin

The company had sold around 75 percent of its Bitcoin holding at the end of the quarter. Which increased the cash balance on its balance sheet by $936 million. Tesla had invested around 1.5 billion dollars in Bitcoins in 2021 and sold $272 million worth of the cryptocurrency shortly after.



On the earnings call, Musk explained why Tesla decided to unload a significant portion of its Bitcoin holdings:


“The reason we sold a bunch of our Bitcoin holdings was that we were uncertain as to when the COVID lockdowns in China would alleviate,” Musk said. “So, it was important for us to maximize our cash position given the uncertainty of the lockdowns.”


“We’re certainly open to increasing our Bitcoin holdings in the future — so this should not be taken as a verdict on Bitcoin," he said, before quickly adding that "we have not sold any of our Dogecoin.”



Price action:

The shares of Tesla did not see much of a significant change after it released its earnings, with shares trading up only 1.45% higher after the closing bell.



Disclaimer - Nothing in this post is financial advise

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