Wednesday, October 27, 2021

Tesla reports more than $1 billion in net income during Q2 2021

Tesla appears to keep winning and winning. The latest Tesla earnings call reveals a tenfold increase in net income, meaning Tesla made over one billion dollars after expenses. This would be the 8th positive quarter in a row for the American electric car maker.

Tesla reported $1.14 billion in (GAAP) net income for Q2 – the first time it has surpassed $1 billion. This is among a revenue of $11.96 billion, mostly made by selling cars. Overall automotive revenues amounted to $10.21 billion, of which only $354 million came from sales of regulatory credits – less than in any other year.

To compare: In the first quarter of 2021 Tesla generated revenue of 10.389 billion US dollars and a surplus of 438 million US dollars. Tesla said this was mainly due to lower costs as reported so that the trend continues.

tesla logo
tesla logo

In Q1, the Californian company had achieved the seventh quarterly profit in a row. Tesla is going from strength to strength here, having recorded a profit in now eight consecutive quarters with 2020 being their first profitable year since inception.

For operations, Tesla said tonight, it had worked “extremely hard” to keep the factories in Fremont and Shanghai operating at capacity. With success, it appears, as the company’s operating margin stood at 11%, up from 5.7% in Q1. Operating margin measures how much profit a company makes on a dollar of sales. Tesla said the increase was mainly due to volume growth and cost reduction.

These positive impacts were partially offset by higher operating expenses such as ramping up the revised Model S and Model X and additional supply chain costs. In addition, Tesla also lost on the Bitcoin market after the investment had proven successful in Q1.

See also  Tesla Model 3 police car getting tested in the UK

In Q2 2021, Tesla set new records when delivering 201,250 electric cars to customers and built 206,421 vehicles between April and June.

One small thing to note is that RD spending slightly decreased and the company did not give any reason. Given all the projects they are working on this development stood out.

Hi I'm Leanne. I'm a big fan of electric cars (drive a Model 3 myself) and support the movement to go electric! I hope you enjoy my Articles here on the website.
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