Tesla posts a record $1.1bn profit in Q2

27 Jul 2021

Image: © Sundry Photography/Stock.adobe.com

This period marks a record profit for the carmaker as well as the first time its profitability isn’t dependent on emissions credit sales.

Electric vehicle maker Tesla has reported a net income of $1.14bn for the second quarter of 2021, passing the $1bn mark for the first time in a quarter and surpassing Wall Street expectations.

The company’s total revenue for Q2 was $11.95bn, up 98pc year on year and above a predicted $11.2bn. Its earnings-per-share (EPS) for the period was $1.02, an increase of 920pc and beating an expected $0.96. Its adjusted EPS was $1.45.

“Global demand continues to be robust, and we are producing at the limits of available parts supply,” said the company upon release of its earnings report. “While we saw ongoing semiconductor supply challenges in Q2, we were able to further grow our production.”

The company delivered just over 200,000 vehicles during the three month period, an increase of 121pc compared to the same period last year.

This is the company’s eight straight quarter of profitability, and by far its largest quarterly profit. Its previous record, set in Q1 of this year, was $438m.

This is the first quarter, however, where Tesla turned a profit without relying on the sale of emissions credits to other carmakers. In Q2 the company generated $354m this way, down from $518m in Q1.

The earnings report is good news for the company, which was recently forced to delay release of its Semi truck until 2022 and received a fine for illegal construction at its German Gigafactory.

Meanwhile, the Tesla CyberTruck is meant to go into production later this year. CEO Elon Musk recently said it could “flop”, but that he doesn’t care because he loves that the vehicle “looks like it was made by aliens from the future”. The carmaker said it has received more than 500,000 pre-orders for the CyberTruck, which caused a stir upon its announcement due to its unusual design and the accidental smashing of two windows on a prototype.

Jack Kennedy is a freelance journalist based in Dublin