Although factors such as the epidemic disturbed Tesla's production pace in the first half of the year, in the second quarter of this year, Tesla still delivered a performance report card that exceeded market expectations.
htmlOn July 21, Tesla announced its second quarter financial report. According to the financial report, Tesla's operating income in the second quarter was US$16.934 billion, a year-on-year increase of 42% from the second quarter of last year, higher than analysts' expectations of US$16.88 billion. According to the US General Accounting Standards (GAAP), net profit attributable to common shareholders was US$2.259 billion, a year-on-year increase of 98%.
It is worth noting that Tesla sold 75% of its Bitcoin holdings in the second quarter, bringing in $936 million in revenue. Tesla CEO Musk said in the earnings call that the sale of large amounts of Bitcoin assets is because we are not sure when the impact of the epidemic will ease, and it is crucial to maximize the maintenance of cash positions now. Musk stressed that selling Bitcoin should not be seen as some judgment of his Bitcoin trend.
As of the close of US stocks on July 21, Tesla rose 0.8% to US$742.5 per share, with a latest market value of US$769.52 billion. After the U.S. stock market, Tesla's stock price rose by 4%.
revenue and net profit both increased, but gross profit margin declined
Tesla's financial report disclosed that the company's total revenue and net profit in the second quarter of 2022 mainly benefited from three factors, including an increase in automobile delivery volume, an increase in average sales price and other business growth.
public data shows that Tesla's total car delivery volume in the second quarter was 254,700 units, a year-on-year increase of 27%, and a decline from the first quarter. Among them, the delivery volume of Model S and Model X models was 16,200, a year-on-year increase of 753%; the delivery volume of Model 3 and Model Y models was 238,500, a year-on-year increase of 20%.
Since this year, Tesla has raised the product prices many times to cope with pressures such as rising raw material prices and logistics costs. Despite this, due to factors such as inflation, the epidemic, competition for battery and parts supply, and appreciation of the US dollar, Tesla's gross profit margin in the second quarter has declined to 27.9%, lower than 32.9% in the previous quarter, and also declined compared with the same period last year.
In response to the above pressure, Musk said in the second quarter financial report call that if there are signs of inflation falling, we do not need to increase the selling price, and may even lower it, but these are things that Tesla cannot control.
"Tesla will not raise the price of product to a certain arbitrary high level just because the burden exceeds the capacity limit, so that the demand for products will plummet. We have raised prices several times. Frankly speaking, Tesla's car prices are now at an awkward level. But we also face many shocks in supply chains and production, as well as crazy inflation. I hope to lower the price a little at some point." Musk admitted that according to his speculation, inflation may drop by the end of this year, and the prices of some raw materials will also fall, but the prices of lithium materials will still remain high.
maintains the growth guidance of 50% of annual delivery volume.
In the first half of this year, due to the impact of the epidemic, Tesla's Shanghai factory was suspended for nearly seven months, which to a certain extent affected the company's production efficiency and product delivery.
public data shows that in the first half of the year, in the first half of 2022, Tesla has completed the global delivery of 564,000 vehicles, which is still a certain distance from the annual delivery target of 1.4 million vehicles. Therefore, Tesla will still focus on increasing production capacity in the second half of the year.
It is reported that Tesla's Shanghai factory has recently undergone production capacity upgrades, with an annual production capacity of more than 750,000 vehicles, making it the highest production capacity of Tesla. At the same time, the annual production capacity of Tesla's California factory is 650,000 vehicles, while the annual production capacity of the Berlin factory and Texas factory exceeds 250,000 vehicles.
Musk said that as the Shanghai factory and Fremont factory reach the highest monthly output ever, the production capacity of the new factory is also rising. I believe that Tesla will achieve record production in the second half of this year.
In the next few years, Tesla will still adhere to the goal of achieving an average annual growth of 50%. However, this growth rate depends on Tesla's equipment capacity, factory uptime, operational efficiency, supply chain capabilities and stability.
It is reported that the industrial production of Tesla's pure electric truck Cybertruck has also made progress, and production is currently planned to start at the Austin factory after the Model Y model.
To maintain cash positions, sell Bitcoin
In the second quarter of this year, Tesla sold 75% of its Bitcoin positions, bringing revenue of US$936 million. It is worth noting that this year, the price of Bitcoin fell by nearly 60%.
In response to this, Musk explained that the reason for selling a large number of Bitcoin assets is that we are not sure when the impact of the epidemic will ease, so it is important to maximize our cash position now.
financial report information shows that in the second quarter, Tesla's cash and cash equivalents increased by US$800 million to US$18.3 billion. Tesla judges that in the future, the company will have sufficient working capital to support product planning, long-term capacity expansion plans and other expenditures.
Regarding selling Bitcoin, Musk emphasized that selling Bitcoin should not be regarded as some judgment on the trend of Bitcoin.
