Tesla Q2 Results: Tesla sold 75% of its Bitcoin holdings in June quarter

Tesla Q2 Earnings: Tesla June quarter numbers were impacted by rising inflation, global economic crisis, fall in crypto prices, Ukraine war, supply chain constraints and covid lockdowns in China.

Tesla Q2 Results Highlights:

Tesla Q2 Revenue: Tesla reported revenue of $16.93 billion in Q2 and earnings of $2.27 per share. Revenue is below analysts' expectations of $17.1 billion, but EPS is higher than an estimate of $1.81. The revenue was up 42% year on year.

Automotive revenues made up $14.6 billion of the company’s total, with $1.47 billion coming from services and other revenue, and $866 million from the company’s energy segment.

Tesla Q2 Net Income: The operating income improved YoY to $2.5B in Q2, resulting in a 14.6% operating margin. YoY, operating income was primarily impacted by the following items:

+ increased ASP

+ growth in vehicle deliveries

+ profit growth in other parts of the business

+ lower stock-based compensation expense

- higher raw material, commodity, logistics, and expedite costs

- higher per unit fixed costs in Shanghai due to shutdowns

- negative FX impact

- Bitcoin impairment

Tesla Q2 Cash position: In Q2, cash, cash equivalents, and short-term marketable securities increased sequentially by $902M to $18.9B. It was driven mainly by a free cash flow of $621M, partially offset by debt repayments of $402M. By June end, the company has converted approximately 75% of its Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to the company's balance sheet.

Tesla Q2 Vehicles sold: Tesla produced 258,580 vehicles and delivered 254,695 in the June quarter. Sequentially, the numbers are lower. However, YoY, total production and delivery increased by 25% and 27%, respectively.

Inflation uncertainty: Russia’s brutal invasion of Ukraine and Covid outbreaks in China exacerbated ongoing semiconductor and parts shortages, along with other supply chain snags. Covid restrictions in Shanghai forced Tesla to temporarily suspend or limit production at its factory there during the second quarter of 2022.

Tesla Q2 update on new factories: Tesla’s new factory outside of Berlin surpassed 1,000 cars per week in June, and the company expects the company’s new factory in Austin, Texas to exceed the 1,000 per week production milestone in the next few months.

Tesla stock jumped 4% on Thursday post better than expected Q2 earnings.