Tesla Inc’s profit topped $1 billion for the first time in the company’s history and sales nearly doubled, beating Wall Street expectations, but there was no rally in stocks late Monday as “limited” battery supply and persistent chip shortages dented Silicon production. Valley to make electric cars and forced it to delay the launch of its commercial truck.
It said it earned $1.14 billion, or $1.02 a share, in the second quarter, compared to $104 million, or 10 cents a share, in the year-ago quarter. After adjusting for one-time items, the company earned $1.45 per share.
Revenue rose 98% to $11.96 billion, from $6.04 billion a year earlier, which the company attributed in part to “significant growth” in auto sales.
Analysts polled by FactSet had expected Tesla to report adjusted earnings of 94 cents per share on sales of $11.51 billion in the first quarter. Monday’s results marked the eighth consecutive benchmark for the company’s GAAP and adjusted quarterly earnings.
CEO Elon Musk said in a phone call after the results that the chip shortage “remains very serious.” “Chip supply is the primary factor that governs our production,” he said, and it’s hard to say how long that will last because it’s outside of Tesla’s control.
Musk said Tesla has used replacement chips, but that’s not just a matter of trade-off, as new software must be rewritten afterwards.
Besides delaying the near-final launch until 2022, Musk and Tesla executives have left the start of production of the Cybertruck, the much-anticipated pick-up, at their Austin, Texas plant under construction, saying it will only be later this year.
Production of the car was expected in early 2021, and the Tesla Semi, which was revealed in 2017, has been delayed by two years.
Musk also surprised Wall Street by saying he was unlikely to be on Tesla’s future earnings calls, “unless there’s something important I want to say,” he told analysts and others.
In a now-famous conference call after the results in May 2018, Musk cut off analysts and his executive team, calling analysts’ questions “greatness” and “boring,” and blaming the press for what he saw as greater coverage of independent issues. -More car-driving accidents than human-made crashes, a criticism that he will continue to shoot again, on several occasions.
Recently, in an April 2020 earnings call, he doubled down on his criticism of protection orders in place, then put in place to curb the spread of COVID-19 that affected the Tesla plant in California, calling it a “violation of people’s rights” and likening them to the outbreak.
In its regular letter to investors on Monday, Tesla said it was still on track to build the first Model Y compact SUV at factories in Berlin and Austin this year, with the pace of the production ramp “affected by the successful introduction of several new products and manufacturing technologies, and ongoing supply chain and regional permitting challenges.”
“In order to better focus on these plants, due to the limited availability of battery cells and global supply chain challenges, we have shifted the launch of the semi-truck program to 2022,” she said.
From June: Tesla trucking company president Jerome Guillen leaves the company
“Tesla’s numbers, which beat estimates by a healthy margin, confirm continued strong global demand for electric vehicles, enough to offset Tesla’s near-term challenges,” said iSeeCars.com analyst Karl Brauer.
Argus Research’s Bill Silesi said the delay in the semi-finals was “a bit disappointing…but it’s not a big deal”.
Tesla’s operating income increased year-over-year primarily due to volume growth and cost cuts, but was partially offset by higher expenses, additional supply chain costs, lower revenue from regulatory credits and “the associated bitcoin depreciation ($23 million)” she said. company.
Tesla has kept its sales guidance for the year intact and unspecified, saying it expects “over several years” it expects 50% annual growth in auto sales, and sees 2021 as a year in which it can grow even faster.
Tesla reported a mixed first quarter in April, beating Wall Street forecasts for revised earnings, but missed sales forecasts, as the company struggled with parts shortages and other hurdles.
Tesla shares have lost about 6% this year, and are holding gains of about 133% over the past 12 months. That compares with an advance of about 18% and 37% for the S&P 500 SPX,
in these same periods.