Tesla (NASDAQ:TSLA) share price climbs on record revenue and profits

Tesla shines after record-breaking quarterly result…

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Shares in electric vehicle and clean energy company Tesla Inc (NASDAQ: TSLA) were slightly higher in after-hours trade following the release of its second-quarter results. This was on the back of a 2.2% increase in the Tesla share price during overnight trade.

The highly anticipated results shot the lights out, beating analyst estimates. Let's lift the lid on the company's report and take a closer look.

Record-breaking quarter highlights Tesla share price

In a bullish quarterly result, the company made a record number of deliveries despite the current global shortage of chips. According to the update, more than 200,000 vehicles were delivered during the second quarter, representing a 121% year-over-year (YoY) increase.

The majority of the deliveries were made up of Model 3 and Model Y. The uplift in sales resulted in automotive revenues increasing 97% YoY to US$10,206 million. Meanwhile, total revenue amounted to US$11,958 million. This pipped the US$11,300 million estimated by analysts.

Additionally, the record revenue was less reliant on regulator credits – which was a point of contention for the company's previous quarterly result. Revenue from regulatory credits came to US$354 million, a decrease of 17% compared to the prior corresponding period.

Furthermore, Tesla achieved a total GAAP gross margin of 24.1%, despite the reduction in regulatory credit revenue.

Moving towards the bottom line, income from operations came to US$1,312 million. This was also a record for the company, increasing by 301% YoY. Likewise, earnings per share (EPS) skyrocketed 920% to US$1.45, compared to analysts' estimates of 98 cents per share.

The company noted: "Operating income increased YoY mainly due to volume growth and cost reduction. Positive impacts were partially offset by growth in operating expenses including SBC, Model S/X ramp (negative margin in Q2), additional supply chain costs, lower regulatory credit revenue, Bitcoin-related impairment of $23 million and other items."

In another positive for the Tesla share price, some were expecting a larger Bitcoin (CRYPTO: BTC) related impairment following a fall in its value.

How about solar and battery storage?

As shareholders would know, Tesla is more than an automotive company. It is also a solar and energy storage company. On that note, solar deployments increased 215% YoY to 85 megawatts.

Similarly, energy storage deployments more than tripled to 1,274 megawatt-hours during the quarter.


Tesla informed investors it plans to grow its manufacturing capacity as quickly as possible. In addition, over a multi-year timeframe, Tesla expects to deliver a 50% average annual growth in vehicle deliveries.

On the cash front, the company now has US$16,229 million of cash and cash equivalents. This provides sufficient liquidity to fund Tesla's product roadmap, capacity expansion plans, and other expenses.

Finally, management believes the company is on track to produce its first Model Y vehicles from its Berlin and Austin factories in 2021. However, the launch of the semi-truck has been pushed back to 2022.

At the time of writing, the Tesla share price is US$657.67. Correspondingly, the company's market capitalisation equates to US$633.5 billion.

Motley Fool contributor Mitchell Lawler owns shares of Bitcoin and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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