Tesla’s record-breaking quarter gives investors hope

Elon Musk’s automotive EV company has reported strong Q2 2021 results, much to shareholders’ excitement.
2 min read
Tesla Car

Tesla Motors Inc have reported their Q2 2021 results, surpassing market expectations.

Tesla reported a staggering $11.96bn in revenue ($11.3bn expected), $10.2bn of which stems from automotives. $354m of this revenue originates from the sale of regulatory credits. This is a revenue increase of 98% year-on-year, compared to Q2 2020.

Operating expenses for this quarter were $1.5bn, declining slightly from $1.62bn in Q1 2021. Under this heading, Tesla reported a $23m operating expense referred to as ‘restructuring and other’ – this expense was due to the fall in market value of Bitcoin, a cryptocurrency of which Tesla revealed it held. Operating expenses are now 67% of what they were in Q2 2020.

Perhaps the critical element of the quarterly financial report to shareholders was the earnings per share (EPS). Tesla reported $1.45 earnings per share attributable to common shareholders ($0.98 expected from analysts; Non-GAAP), a 230% incline from the $0.44 EPS it reported in Q2 of 2020.

Tesla reported they had made 1,895 Model S and/or Model X deliveries in this quarter, a 82% decrease year on year in comparison to Q2 2020. This sharp reduction in deliveries may be due to the surging popularity of the Model 3 and Model Y, which deliveries increased by 148% year on year to 199,409. This gives Tesla’s total delivery count for this quarter at 201,304, an increase of 121% year on year.

Tesla has acknowledged growing demand for their supplies, including the challenges faced due to the shortage of semiconductors, which has caused long delivery wait times in Europe particularly. They also stated that most of the deliveries of Model 3 and/or Model Y were made in North America, due to the enormous demand for these models in the US.

One of Tesla’s key target markets this year has been China. The EV company reported that although they encountered interruptions with upgrading factories and buildings, as well as supply chain issues, production of vehicles in Shanghai has been stable. They have also verified that Teslas in China will be produced in their new factory, Gigafactory Shanghai, to balance to the ongoing US demand of Model 3 and Model Y.

As a result of this quarterly earnings report, Tesla Inc’s stock peaked at $668 per share on July 26, and closed at $657 on the same day.

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