Tesla grows revenue 42%, but automotive margins decline

Tesla Inc. signage outside a dealership at the Easton Town Center shopping mall in Columbus, Ohio, U.S., on Friday, Dec. 10, 2021.

The stock went up 2% after the earnings were reported.

• Earnings per share (EPS): $2.27 (adjusted) vs $1.81 expected, according to Refinitiv
• Revenue: $16.93 billion, vs. $17.1 billion expected, according to Refinitiv

The automotive gross margin was 27.9%, down from 32.9% last quarter and 28.4% a year ago, due to inflation and more competition for battery cells and other components that go into electric vehicles.

The company generated $344 million in automotive regulatory credits in the second quarter. It is a $10 million decline from the same period in the previous year.

There was a 27% growth in electric car deliveries from the year-ago quarter, but an 18% decline from the previous quarter. The closest approximation is deliveries. The Model 3 and Model Y were the majority of the deliveries.

Semiconductor and parts shortages were worsened by the Russian invasion of Ukraine and the Covid outbreak in China. During the second quarter of 2022, due to covid restrictions inShanghai,Tesla temporarily suspended or limited production at its factory there.

The high costs of starting up production at new factories in Austin, Texas and Grnheide, Germany was lamented by Musk. The two new factories are huge money furnaces, according to Musk.

In June, the CEO announced layoffs.

Depending on how the company traded thecryptocurrencies, they may have declined in value. Brian Johnson said on Monday that he expects the company to record an impairment of up to $460 million due to the decline in the price of the virtual currency.

The company surpassed production of 2 million vehicles at its California factory, which was marked by an employee posting on the social networking site.

According to a White House memo from June 28, there will be new Supercharger equipment that will allow non-Tesla EV drivers in North America to use it.