The giant car marker, Tesla, reported second-quarter earnings after the bell Monday. The Q2 earnings turned out better than anticipated, and shares increased by nearly 2% after-hours.
Tesla reported earnings of $1.45 cents per share, while analysts expected $98 cents per share. The tech maker reported revenue of $11.96 billion, while according to Refinitiv, $11.30 billion revenue was expected.
The vehicle maker reported $1.14 billion in net income for the second quarter. Remarkably, that’s the first time it has exceeded $1 billion. In the previous year, net income amounted to $104 million.
Moreover, overall automotive revenue was $10.21 billion, of which only $354 million, around 3.5%, came from sales of regulatory credits. Notably, that’s the lowest number of credits in a year. However, automotive gross margins were 28.4%, the highest in a year.
The company had already reported deliveries of 201,250 electric cars, and production of 206,421 total cars, during the second quarter of the year.
The firm also reported $801 million in revenue from its energy business. It is up more than 60% from last quarter.
The tech maker also reported $951 million in services and other revenues. Tesla now runs 598 stores and service centres as well as a mobile service fleet including 1,091 vehicles. Remarkably, it is up 34% versus a year ago.
Tesla’s cash position declined nearly 5% from last quarter to $16.23 billion. According to the company, the decline was driven mainly by net debt and finance lease repayments of $1.6 billion. It was partially offset by free cash flow of $619 million.
Tesla plans to open its Supercharger DC fast-charging stations
Accounts payable surged 13.7% from the previous quarter to $7.56 billion. Remarkably, Accounts payable is the amount of money Tesla owes suppliers and other service providers.
Tesla Vice President of Vehicle Engineering Lars Moravy announced Cybertruck production should begin at Tesla’s new plant in Texas at the end of the year.
Musk announced this would be limited production at first, and he expects ramping up production to a high volume will prove challenging due to the unique design of the vehicle. Tesla announced in its shareholder deck that Cybertruck production will follow production of Model Y in Texas.
As we know, the giant car maker plans to open its Supercharger DC fast-charging stations to drivers of electric cars. The company’s goal is to expand its charging network enough, so drivers won’t have to wait long to charge their vehicles.