Tesla Q2 2022 report shows crypto selloff, decrease in profits

Tesla has already reported Number of vehicles shipped in the second chartr, and now the full second quarter 2022 financial report (pdf), reveals that it is dealing with inflation and the overall recession, coupled with the plunge in prices of Bitcoin and other cryptocurrencies. I am. Tesla executives said in a letter to investors that the company sold 75% of Bitcoin’s holdings and added $ 936 million in cash to its balance sheet.

Last year, Tesla announced that it would invest $ 1.5 billion in Bitcoin and accept Bitcoin as a payment.Tesla has begun Accept Bitcoin in late Marchafter that Suddenly reversed in MayJust 49 days later.

Tesla said in its latest report that the value of the remaining “digital assets” was $ 218 million, which was about $ 1.2 billion in the previous quarter. Last July, Mask said“I might pump, but I won’t throw it away … I absolutely don’t believe in selling at a higher price. I hope Bitcoin will succeed. “

The company reports a profit of $ 2.26 billion this quarter in the electric vehicle and solar product manufacturing business, where new competitors appear to be announced daily. Profit of $ 3.3 billion. The profit was $ 16.9 billion in revenue. That’s also down from the first quarter, when the company reported it brought $ 18.7 billion.

In terms of profitability, the company performed better than the second quarter of 2021 with $ 11.9 billion in revenue and $ 1.1 billion. The company believes it is due to several factors, including “decreased inventory-based compensation costs,” increased vehicle deliveries compared to last year, and improved average selling prices.This is the first full quarter since Tesla Raised the price of all cars 10 percent, and that’s Price increase again With some models in June. Despite rising prices, the company tends to increase revenue per unit every quarter. The total margin for automobiles in the first quarter was 32.9%. It was 27.9% this quarter.

Tesla Announced earlier this month Delivery was delayed, a decrease of about 18% compared to the first quarter. In addition, production in this quarter was about 15% lower than in the previous quarter. Tesla said in its earnings report that it faced “production restrictions and closures in Shanghai for most of the quarter,” but continued to increase production at its new facilities in Berlin and Austin, Texas.

Other issues reported by automakers are rising prices for everything from raw materials to logistics, rising fixed costs per car due to the closure in Shanghai, and, of course, the aforementioned “Bitcoin impairment”. ..

Compared to the previous quarter, the company’s revenue from selling regulated credits to other automakers fell by almost 50%. It brought $ 679 million from credit in the first quarter and earned only $ 344 million in the second quarter. Credits help other companies that do not manufacture enough “clean” vehicles to meet US and EU regulatory standards.

Culturally, Tesla was a turbulent quarter. In late April, CEO Elon Musk sold billions of dollars worth of shares in the company to help pay for Twitter. Huge mess And now Headed to the court of Chancery in Delaware After Elon tried to cancel the arrangement).Musk also reportedly said he had “very bad feelings” about the economy. Announcement of layoffs and layoffs At the company.Those temporary dismissals Affected the autopilot teamAnd Tesla have been blamed Labor law violation After sending more than 500 Giga Factory workers.The company too Lost the head of AI Early this month.

But that wasn’t all bad news. The partnership between Tesla and Uber and Hertz allows qualified ride-sharing drivers to rent EVs and ferry passengers. Seems to be working Based on a report from Uber in June.Also, in 2022, EVs other than Tesla will Gain access to the supercharged network In the United States, it is based on the fact sheets released by the White House.

The company will discuss the results of the second quarter on the investor phone at 5:30 pm (Eastern Time) / 2:30 pm (PT). You can listen here..


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