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Auto giant Tesla reports more than $1 billion in net income during second quarter

Elon Musk's Tesla reported second-quarter earnings after the bell Monday, and it’s a beat on both the top and bottom lines. Shares rose about 2% after-hours. Here are the results.

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Auto giant Tesla reports more than $1 billion in net income during second quarter
Auto giant Tesla reports more than $1 billion in net income during second quarter

Earnings: $1.45 vs 98 cents per share adjusted expected, according to Refinitiv

Revenue: $11.96 billion vs $11.30 billion expected, according to Refinitiv

The company reported $1.14 billion in (GAAP) net income for the quarter, the first time it has surpassed $1 billion.

Overall automotive revenue came in at $10.21 billion, of which only $354 million, about 3.5%, came from sales of regulatory credits. That’s a lower number for credits than in any of the previous four quarters. Automotive gross margins came in at 28.4%, higher than in any of the last four quarters.

Tesla had already reported deliveries (its closest approximation to sales) of 201,250 electric vehicles, and production of 206,421 total vehicles, during the quarter ended June 30, 2021.

The company also reported $801 million in revenue from its energy business, including solar photovoltaics and energy storage systems for homes, businesses and utilities, an increase of over 60% from last quarter.

While Tesla does not disclose how many energy storage units it sells each quarter, in recent weeks Musk said, in court, that the company would only be able to produce 30,000 to 35,000 at best during the current quarter, blaming the lag on chip shortages.

Tesla also reported $951 in services and other revenues. The company now operates 598 stores and service centers, and a mobile service fleet including 1,091 vehicles, an increase of just 34% versus a year ago. That compares to an increase of 121% increase in vehicle deliveries year over year.

A $23 million impairment related to the value of its bitcoin holdings was reported as an operating expense under “Restructuring and other.”

The company’s cash position decreased about 5% from last quarter, to $16.23 billion. The decline was “driven mainly by net debt and finance lease repayments of $1.6B, partially offset by free cash flow of $619M,” the company said in its earnings statement.

Accounts payable — the amount of money Tesla owes suppliers and other service providers — rose by  13.7% from the previous quarter to $7.56 billion.

During the quarter, among other challenges, Tesla faced a backlash from consumers in China, recalls in China and the US, and delayed deliveries of the high-performance version of its flagship sedan, the Model S Plaid.

Institutional and retail investors asked for updates on when the company plans to start commercial production of its Cybertruck and custom battery cells, and how Tesla will weather ongoing parts shortages and the rising cost of raw materials that CEO Elon Musk previously complained about.

Parts shortages have been stubbornly persistent for Tesla and other automakers. In its shareholder deck, Tesla said that it had delayed the launch of the Semi truck program until 2022.

On the shareholder call Monday, Musk said a “big struggle this quarter” was to procure enough modules that control the airbags and seatbelts in Tesla vehicles. The lack of supply limited the company’s production both in Fremont, California, and Shanghai.

Musk also said that many fans ask why Tesla doesn’t just make its own chips to avoid shortages. He said that supply chain issues are something Tesla will solve with suppliers, laughing that “It’s not like you can just whip up a chip fab.”

Because Tesla uses a lot of the same semiconductors and battery cells in cars as it does in energy storage products, Musk said, the company has reduced its production of Powerwalls, and its Megapack battery systems for use at power stations is sold out until the end of next year.

SOURCE: CNBC 

Faisal Ali Ghumman is a senior editor at GNN, known for writing top quality content which garner very high readerships and has been covering every field of journalism, including politics, media, sports and scholarly articles. Faisal Ali Ghumman is nothing less than a Veteran Editor and has been writing for GNN for the past 3 months.

Pakistan

COVID-19 kills another 78 as Pakistan continues battle against fourth wave

Islamabad: Pakistan is witnessing daily surge in COVID-19 cases with authorities linking the upswing to the deadly fourth wave. Today country’s positivity rate is on 5.44%.

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COVID-19 kills another 78 as Pakistan continues battle against fourth wave

As per National Command and Control Center (NCOC), around 2,580 cases of coronavirus were reported while 78 people succumbed to the disease in the last 24 hours, taking the total death toll to 26,865.

Pakistan conducted a total of 47,419 tests in the last 24 hours.

As per the NCOC, total confirmed cases are 1,210,082 whereas 5,304 are under critical care.

Punjab            

The number of patients swelled to 415,654 in the province with 12,259 causalities.

Sindh

The number of infections has surged to 446,045 in the province, while the death toll has reached 7,177.

Khyber Pakhtunkhwa

The confirmed cases have surged to 169,040 in the province with 5,290 casualties.

Balochistan

There are 32,618 confirmed cases while 344 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 33,432 coronavirus cases in the AJK while the death toll has reached 724. On the other hand, there are 10,168 cases in GB with 182 coronavirus deaths.

Islamabad

There are 103,125 cases in the capital city while 889 people have lost their lives.

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World

North Macedonia: Massive fire engulfs COVID hospital, kills ten patients

Skopje: At least 10 people were killed and many more injured after a massive fire broke at a hospital treating coronavirus patients in Tetovo, North Macedonia.

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North Macedonia: Massive fire engulfs COVID hospital, kills ten patients

The huge blaze erupted Wednesday night—claiming lives of ten. Fire services and rescue teams rushed to the scene and fought to douse the flames for a couple of hours.

It’s not yet clear how the large blaze started or how many patients were inside.

While the cause has yet to be established, the country's Prime Minister Zoran Zaev posted on social media that the fire had followed an on-site explosion.

Footage shared on social media showed a building in flames and a thick cloud of black smoke billowing into the air near a main road in the city of Tetovo.

The facility was reportedly built last year to help care for COVID-19 patients.

Tetovo deputy fire Chief, Saso Trajcevski said, "The fire was huge because the hospital is modular, there was plastic".

The fire occurred as the former Yugoslav republic celebrated the 30th anniversary of its independence, with festivities in the capital Skopje, including a military parade.

However, investigators have gone to the scene to determine the cause of Yesterday’s fire.

Meanwhile, North Macedonia has been battling a surge in COVID-19 cases recently with 701 new cases and 24 deaths in the past 24 hours.

It has recorded more than 6,100 fatalities in total since the start of the COVID outbreak.

Macedonia government had to impose stricter measures, in a bid to prevent the spread of virus.

North Macedonia has a population of around 2 million and its healthcare services are run down as hospitals are overwhelmed in some areas, particularly where vaccination rates are low.

Covid-19 hospitals in other countries have been hit by explosions followed by fires. In Iraq, dozens of people were killed in fires that occurred after oxygen cylinders exploded in April and July.

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Pakistan

'COVID fourth wave': Pakistan reports 3,689 cases, 83 deaths

Islamabad: Pakistan is presently experiencing the fourth wave of coronavirus which is said to be deadlier and more contagious than previous three COVID waves.

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'COVID fourth wave': Pakistan reports 3,689 cases, 83 deaths

According to National Command and Operations Center (NCOC), around 3,689 cases of coronavirus were reported while 83 people succumbed to the disease in the last 24 hours, taking the total death toll to 26,580.

The total number of cases has reached 1,197,887.

As many as 1,079,867 patients have recovered from the disease with 5,383 critical cases.

Punjab                

The number of patients swelled to 410,463 in the province with 12,171 causalities.

Sindh

The number of infections has surged to 442,401 in the province, while the death toll has reached 7,089.

Khyber Pakhtunkhwa

The confirmed cases have surged to 167,154 in the province with 5,200 casualties.

Balochistan

There are 32,517 confirmed cases while 342 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 33,131 coronavirus cases in the AJK while the death toll has reached 715. On the other hand, there are 10,127 cases in GB with 179 coronavirus deaths.

Islamabad

There are 102,094 cases in the capital city while 884 people have lost their lives.

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