By
Svetlana Soroka
April 18th, 2024
With Tesla hitting a record Q2 net profit, the company is making an optimistic prognosis for the upcoming future. It expects a 50% average annual growth in vehicle deliveries.
On Monday, Tesla Inc (NASDAQ: TSLA) released its Q2 2021 earnings report. The company has blown away Wall Street expectations, with incredible numbers it showed in the report. According to Tesla, its Q2 net profit has totaled $1.1 billion USD for the first time in its history.
Tesla Q2 Earnings: Net Profit and Other Highlights
The EV producer has hit several records in the second quarter of 2021.
Firstly, its profit totaled $1.14 billion, or $1.02 per share. In comparison, it was $104 million or 10 cents a share, a year ago. Adjusted for one-time items, Tesla earned $1.45 a share, compared with 44 cents a share a year ago.
Secondly, Tesla’s total revenue for the second quarter made up $11.9 billion, which marks a 98% year-over-year increase. Such a surge resulted from significant growth in vehicle deliveries and other parts of the company’s business. The overall automotive revenues totaled $10.21 billion, only $354 million of which came from sales of regulatory credits. As far as its energy and storage business is considered, Tesla reported $801 million in revenue.
Further, Tesla produced and delivered over 200,000 vehicles despite supply chain challenges amid increased scrutiny in China. That marks an increase of 121% in vehicle deliveries year over year.
Speaking of services and other revenues, Tesla reported $951 million. Currently, the company operates 598 stores and service centers, as well as a mobile service fleet including 1,091 vehicles, a 34% increase compared to a year ago.
Looking Ahead
With Tesla hitting a record Q2 net profit, the company is making an optimistic prognosis for the upcoming future. It expects a 50% average annual growth in vehicle deliveries. However, the company notes that the rate of growth will depend on “equipment capacity, operational efficiency, and the capacity and stability of the supply chain”.
Tesla stated:
“The pace of the respective production ramps will be influenced by the successful introduction of many new product and manufacturing technologies, ongoing supply-chain related challenges and regional permitting.”
In the period from April to the end of June, Tesla experienced challenges amid the scrutiny in China. The company delayed the rollout of its revamped Model S sedan and Model X SUV because of the ongoing impact of a global semiconductor shortage and port congestion. But in the upcoming quarter, it expects to overcome the challenges and improve already great performance.
According to Wedbush analyst Dan Ives, Tesla’s Q2 results reflect a “bullish print that should start to change the sentiment on this core EV name to play the green tidal wave for the coming years”. The analyst has also added that the firm maintains an outperform rating and $1,000 price target on Tesla. Notably, Wedbush expects a total of 900,000 deliveries for Tesla’s annual 2021 numbers.
Following the earnings report, Tesla stock added 2.21% at close to end at $657.62. After hours, it added 1.02% to $664.30. Its market cap has totaled $619.79 billion.