Tesla announced its earnings for the second quarter of the year on Wednesday afternoon, reporting numbers higher than Wall Street expectations.
The automaker generated revenue of $16.9 billion USD between April and June 2022, up a whopping 42% year-over-year, with earnings per share of $2.27. Wall Street, meanwhile, had forecasted $16.521 billion in revenue and earnings of $1.81 per share.
“We continued to make significant progress across the business during the second quarter of 2022,” the company said.
Tesla reported a net income of $2.3 billion (GAAP) with a 14.6% operating margin. During Q2 2022, Tesla delivered 254,695 cars, up 23.4% year-over-year.
“Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M and ended the quarter with the highest vehicle production month in our history,” Tesla said.
“New factories in Berlin-Brandenburg and Austin continued to ramp in Q2. Gigafactory Berlin-Brandenburg reached an important milestone of over 1,000 cars produced in a single week while achieving positive gross margin during the quarter. From our Austin factory, the first vehicles with Tesla-made 4680 cells and structural battery packs were delivered to our U.S. customers. We are continuing to invest in capacity expansion of our factories to maximize production.” the automaker explained.
Tesla added that this quarter saw the highest solar deployment in over four years. “The Energy business made meaningful progress in Q2 as well, achieving higher volumes with stronger unit economics. This resulted in an overall record gross profit. Customer interest in our storage products remains strong and well above our production rate.”
The company also pointed out that two of its factories achieved their highest-ever production months during the second quarter.
Despite the impressive results, Q2 was rife with production woes for Tesla. The company’s Shanghai Gigafactory remained shut down for a significant portion of the quarter as a result of COVID-19 outbreaks in China, and production is still ramping back up.
According to a recent report, Tesla also plans on intermittently taking some production lines at Giga Shanghai offline during the third quarter to upgrade the facility’s annual production capacity to one million units.
Meanwhile, the company’s newest Gigafactories in Austin, Texas, and Berlin-Brandenburg struggled to scale production due to supply shortfalls. Tesla CEO Elon Musk said in a recent interview that the two plants are “gigantic money furnaces right now.”
…developing, more to follow
