Tesla which is one of the most popular electric carmakers in the world reported second-quarter earnings on Monday. It reported $1.14 billion in (GAAP) net income for the quarter, the first time it rose surpassed $1 billion. Importantly, in the year-ago quarter, net income amounted to $104 million.
Overall automotive revenue reached $10.21 billion, of which only $354 million came from sales of regulatory tariffs. The Palo Alto-based company already reported deliveries (its closest approximation to sales) of 201,250 electric vehicles. In the previous quarter which ended on June 30, the company produced more than 206,000 electric vehicles.
Tesla also reported $801 million in revenue from its energy business. For example, the company offers energy storage systems for homes, businesses, and utilities. The company does not disclose how many energy storage units it sells each quarter, nonetheless, Musk revealed one interesting detail in court. Tesla CEO stated that the company would only be able to make 30,000 to 35,000 during the current quarter.
The world’s one of the most innovative companies also reported $951 million in services as well as other revenues. At the moment, it operates 598 stores and service centers. Furthermore, the company also operates a mobile service fleet that includes 1,091 vehicles, an increase of just 34% versus a year ago.
It reported a $23 million impairment related to the value of its Bitcoin holdings as an operating expense under “Restructuring and other”.
Tesla and various issues
Institutional as well as retail investors asked quite interesting questions. They wanted to know when Tesla plans to start commercial production of its Cybertruck. They also asked how the company plans to deal with ongoing part shortages and the rising costs of raw materials.
Part shortages remain one of the biggest challenges for the company. In its shareholder deck, Tesla CEO noted that it delayed the launch of the semi truck program until 2022. He also addressed another important issue which is a shortage of semiconductors. The company is using a lot of the same semiconductors as well as battery cells in cars as it does in energy product storage products. It is trying to adapt to the new reality by reducing its production of Powerwalls.
He also said that many fans ask why the company doesn’t just make its own chips to deal with shortages. It is quite hard to make chips according to Elon Musk.