Tesla automaker has now released its Q2 2021 results and it shows a significant beat of both revenue and earnings expectations with revenue of $11.958 billion and earnings of $1.45 per share (non-GAAP).
It was more profitable than expected this quarter. Tesla Q2 2021 earnings results show that
“In the second quarter of 2021, we broke new and notable records. We produced and delivered over 200,000 vehicles, achieved an operating margin of 11.0% and exceeded $1B of GAAP net income for the first time in our history.”
It resulted in a strong free cash flow of over $600 million, but Tesla repaid $1.6 billion – resulting in a decrease of cash on hand. tesla Q2 2021 earnings results show that
Quarter-end cash and cash equivalents decreased to $16.2B in Q2, driven mainly by net debt and finance lease repayments of $1.6B, partially offset by the free cash flow of $619M.
Tesla’s automotive gross margins have improved to 28% (25% without regulatory credits) this quarter with operating margin now reaching 11%.
Tesla also reported $951 million in services and other revenues. The company now operates 598 stores and service centres, and a mobile service fleet including 1,091 vehicles, an increase of just 34% versus a year ago. That compares with an increase of 121% in vehicle deliveries year over year.
A $23 million impairment related to the value of its bitcoin holdings was reported as an operating expense under “Restructuring and other.
The company’s cash position decreased about 5% from last quarter to $16.23 billion. The decline was “driven mainly by net debt and finance lease repayments of $1.6B, partially offset by the free cash flow of $619M,” the company said in its earnings statement.
Accounts payable — the amount of money Tesla owes suppliers and other service providers — rose by 13.7% from the previous quarter to $7.56 billion.