Since hitting its lowest level this year in May, Tesla’s share price has traded sideways amid uncertainty about the impact of lockdowns and restrictions in China on its production. , its revenues and its cost base.
Operating margins took a hit, falling to 27.9% from 32.9% in the first quarter, while revenue hit $16.9 billion from $18.76 billion in the prior quarter. and also below what we saw in the fourth quarter of last year.
Earnings surprised on the upside, coming in at CA$2.27, well above estimates of CA$1.83, despite a writedown in its bitcoin holdings, after the decision was made to sell 75%, adding $936m to its balance sheet. . It was also helped by one of its best neighborhoods for solar.
Total second-quarter deliveries fell to 255,000, but in terms of production, Tesla said it had its best month ever in June.
With H1 firmly behind it and deliveries of 565,000 over the last 6 months, everything hinges on the second half of the year if the electric carmaker is to meet its target of 1.3 million deliveries.
That will depend on Tesla’s ability to ramp up production at its new Austin and Berlin plants in the coming months.
CEO Elon Musk said Tesla is on track for a “record” second half as it seeks to ramp up peak production at its four factories. This will be the main challenge for the electric car company, as Musk himself acknowledged when he said production was the main problem facing the company.
Investors were unsure what to make of last night’s results, with initial after-hours gains quickly giving way to a slight decline.