By Yasin Ebrahim
Investing.com - Tesla (NASDAQ:TSLA) reported Monday blowout second-quarter earnings as record deliveries and cost-cutting measures bolstered results.
Tesla shares gained 3.5% in after-hours trade following the report.
Tesla announced earnings per share of $1.45 on revenue of $11.96 billion. Analysts polled by Investing.com anticipated EPS of 93 cents on revenue of $11.53 billion.
Regulatory credit revenue fell 17% to $354 million.
Earlier this month, Tesla reported deliveries of 201,250 electric vehicles, and production of 206,421 total vehicles, during the quarter ending June 30.
Vehicle average selling price declined by 2% year-on-year, but automotive margins continued to improve, rising to 28.4% in Q2 from 26.5% in Q1, and up 298 basis points from the same period a year earlier.
"In the second quarter of 2021, we broke new and notable records. We produced and delivered over 200,000 vehicles, achieved an operating margin of 11.0% and exceeded $1B of GAAP net income for the first time in our history," the company said.
The company's foray into bitcoin proved a drag in the second-quarter, as the slump in the price of the popular crypto since its May record high, led to $23 billion impairment.
Tesla flagged the ongoing shortage in chip supply during the quarter. "Supply chain challenges, in particular global semiconductor shortages and port congestion, continued to be present in Q2."
Looking ahead, component supply will take added importance at time when EV demand remains at record levels. "With global vehicle demand at record levels, component supply will have a strong influence on the rate of our delivery growth for the rest of this year," Tesla added.
A slew of headwinds including increasing electric vehicle competition, China safety issues negatively impacting demand, and the chip shortage have weighed on the share price this year, Wedbush said ahead of the Tesla's quarterly report. "With all of these headwinds, Tesla still impressively hit 200k+ deliveries in the June quarter and appear to be on a trajectory to possibly hit 900k for the year with a stronger 2H on the horizon in our opinion."
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