Tesla Reports Positive Quarterly Earnings

Tesla Reports Positive Quarterly Earnings

Tesla (NASDAQ: TSLA), an American electric vehicle manufacturer, reported positive second-quarter earnings on Monday. The company surpassed USD1 Billion in profit during Q2 for the very first time and shares were up 2% during after-hours following the news.

 

The company reported earnings of USD1.45 per share, compared to the expected USD0.98 a share. Revenue amounted to USD11.96 Billion, higher than analysts anticipated USD11.30 Billion, according to Refinitiv. Automotive revenue totaled USD10.21 Billion, with only USD354 Million coming from sales of regulatory credits. Meanwhile, automotive gross margins increased 28.4% compared to the last four quarters.

According to CEO Elon Musk, due to the chip shortage, the company would only be able to make 30,000 to 35,000 energy storage units throughout the ongoing quarter. Additionally, during the company’s earnings call, Musk revealed he was not likely to join future calls, unless there was a big announcement.

“I will no longer default to doing earnings call,” Musk said, according to Bloomberg. “Obviously I’ll do the annual shareholder meeting, but I think that going forward I will most likely not be on earnings calls unless there’s something really important that I need to say.”

Musk said that he would be focusing on “other work” such as leading Tesla, Spacex and The Boring Company, which he founded. The entrepreneur explained that he did take pleasure in being Tesla’s CEO, saying, “I rather hate it and I would much prefer to spend my time on design and engineering, which is what intrinsically I like doing.”

Nevertheless, many believe that Musk should stay on future Tesla earnings calls.

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