Tesla Q2 Earnings Highlights: Revenue Miss, EPS Beat, Bitcoin Converted To Fiat, Automaker Predicts 'Record Breaking' Second Half

Zinger Key Points
  • Tesla reported revenue of $16.93 billion in the second quarter, up 42% year-over-year.
  • The electric vehicle company announced the conversion of a large percentage of its Bitcoin to fiat.

Electric vehicle leader Tesla Inc TSLA reported second-quarter financial results after market close Wednesday. Here are the key highlights for investors.

What Happened: Tesla reported second-quarter revenue of $16.93 billion, up 42% year-over-year. The total missed a Street estimate of $17.39 billion, according to data from Benzinga Pro.

Automotive revenue totaled $14.6 billion in the second quarter, up 43% year-over-year.

Tesla reported adjusted earnings per share of $2.27 in the second quarter, beating a Street estimate of $1.91.

“We continued to make significant progress across the business during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621 million and ended the quarter with the highest vehicle production month in our history,” the company said in a statement. 

Second-quarter deliveries were 254,695, up 27% year-over-year. Second-quarter production was 258,580, up 25% year-over-year.

The company reported 106 MW of solar deployment in the second quarter, up 25% year-over-year. Energy storage hit 1,133 MWh in the second quarter, down 11% year-over-year.

“The energy business made meaningful progress in Q2 as well, achieving higher volumes with stronger unit economics.”

Tesla ended the second quarter with 709 stores and service locations. The company reported 3,971 Tesla Supercharger stations and 36,165 connectors, both figures up 34% year-over-year.

On the cryptocurrency front, Tesla announced it converted around 75% of its Bitcoin BTC/USD holdings into fiat currency during the second quarter.

“Conversions in Q2 added $936 million of cash to our balance sheet.”

Related Link: How To Trade Tesla Stock Before And After The Q2 Earnings Print 

What’s Next: The company highlighted ramp-ups at factories and reaching the milestone of 1,000 cars produced in a week at the Gigafactory Berlin in the second quarter.

“With each of the Fremont and Shanghai factories achieving their highest-ever production months and new factory growth, we are focused on a record-breaking second half of 2022,” the company said.

The company ended the second quarter with cash and cash equivalents of $18.9 billion.

Tesla is projecting 50% average annual growth for vehicle deliveries going forward.

“We plan to grow our manufacturing capacity as quickly as possible.”

The company said over time it will reduce the cost of manufacturing and operations and also see higher profits from increased software related products.

The Cybertruck is planned to begin production from Gigafactory Texas “subsequent to Model Y ramp.”

TSLA Price Action: Shares of Tesla were trading 0.74% higher at $747.99 in Wednesday's after-hours session. 

Photo courtesy of Tesla. 

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