Earnings

Tesla reports more than $1 billion in net income during Q2, up tenfold from a year ago

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SpaceX founder and Tesla CEO Elon Musk visits the construction site of Tesla’s gigafactory in Gruenheide, near Berlin, Germany, May 17, 2021.
Michele Tantussi | Reuters

Tesla reported earnings after the bell Monday, and it’s a beat on both top and bottom lines. Shares rose about 2% after hours. Here are the results.

  • Earnings: $1.45 vs 98 cents per share adjusted expected, according to Refinitiv
  • Revenue: $11.96 billion vs $11.30 billion expected, according to Refinitiv

The company reported $1.14 billion in (GAAP) net income for the quarter, the first time it has surpassed $1 billion.

Overall automotive revenues came in at $10.21 billion, of which only $354 million came from sales of regulatory credits. That’s a lower number for credits than in any of the previous four quarters. Automotive gross margins came in at 28.4%, higher than in any of the last four quarters.

Tesla had already reported deliveries (its closest approximation to sales) of 201,250 electric vehicles, and production of 206,421 total vehicles, during the quarter ending June 30, 2021.

The company also reported $801 million in revenue from its energy business, including solar energy for homes and businesses and storage for utilities, an increase of over 60% from last quarter. While Tesla does not disclose how many energy storage units it sells each quarter, in recent weeks Musk said, in court, that Tesla’s demand for its Powerwall backup batteries for homes stood around 80,000. He added that the company would only be able to produce 30,000 to 35,000 at best during the current quarter, blaming the lag on chip shortages.

During the quarter, among other challenges, Tesla faced a backlash from consumers in China, recalls in China and the US, and delayed deliveries of the high-performance version of its flagship sedan, the Model S Plaid.

Institutional investors are now looking for updates on two new factories Tesla is building in Austin and near Berlin, when the company plans to start commercial production of its Cybertruck and custom battery cells, and how Tesla will weather ongoing parts shortages and the rising cost of raw materials that CEO Elon Musk previously complained about.

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