Tesla already reported automobile cargo numbers for the second quarter, and now its full Q2 2022 monetary report (pdf) reveals it’s coping with inflation and the general financial downturn, mixed with a plunge in costs of Bitcoin and different cryptocurrencies. Within the letter to buyers, Tesla execs reveal the corporate has bought 75 p.c of its Bitcoin holdings, including $936 million in money to its stability sheet.
Final 12 months, Tesla made a $1.5 billion funding in Bitcoin and introduced that it could settle for Bitcoin as cost. Tesla began accepting Bitcoin in late March, then abruptly reversed itself in Might, simply 49 days later.
Within the newest report, Tesla says the worth of its remaining “digital property” is $218 million, which it had reported at round $1.2 billion in earlier quarters. Final July, Musk mentioned, “I would pump, however I don’t dump … I undoubtedly don’t imagine in getting the worth excessive and promoting or something like that. I want to see Bitcoin succeed.”
In relation to its enterprise of constructing electrical vehicles — the place new rivals appear to be introduced day by day — and photo voltaic merchandise, the corporate is reporting that it made $2.26 billion in revenue this quarter, round a 31 p.c lower from final quarter when it posted earnings of $3.3 billion. The revenue was earned on $16.9 billion in income, which can also be down from Q1, the place the corporate reported bringing in $18.7 billion.
When it comes to profitability, the corporate remains to be doing higher than it did in Q2 2021, the place it made $1.1 billion on $11.9 billion in income. The corporate attributes that to a number of components, together with “decrease stock-based compensation expense,” extra automobile deliveries in comparison with final 12 months, and an improved common promoting value. That is the primary full quarter since Tesla raised the costs on all of its vehicles by as a lot as 10 p.c, and it raised costs once more on choose fashions in June. Regardless of the worth will increase, the corporate has damaged with its pattern of incomes extra per automotive every quarter. In Q1, its gross automotive margin was 32.9 p.c. This quarter, it was 27.9 p.c.
Tesla introduced earlier this month that its deliveries have slowed down, dropping by round 18 p.c in comparison with Q1. It additionally produced round 15 p.c fewer vehicles this quarter in comparison with final. In its earnings report, Tesla says it confronted “restricted manufacturing and shutdowns in Shanghai for almost all of the quarter” however that it continued to ramp up manufacturing at its new amenities in Berlin and Austin, Texas.
Different difficulties the automaker studies are elevated costs in all the pieces from uncooked supplies to logistics, greater fastened prices per automotive because of the closures in Shanghai, and, in fact, the aforementioned “Bitcoin impairment.”
In comparison with final quarter, the corporate’s income from promoting regulatory credit to different automakers dropped by nearly 50 p.c. In Q1, it introduced in $679 million from the credit, and in Q2, it made solely $344 million. The credit assist different firms that don’t make sufficient “clear” autos to fulfill regulatory requirements within the US and EU.
Culturally, it’s been a turbulent quarter at Tesla. In late April, CEO Elon Musk bought billions of {dollars} price of inventory within the firm to assist pay for Twitter (a deal that has been an enormous mess and is now headed to Delaware’s Courtroom of Chancery after Elon tried to cancel the association). Musk additionally reportedly mentioned he has a “tremendous unhealthy feeling” in regards to the economic system when saying the hiring freezes and layoffs on the firm. These layoffs have affected the autopilot workforce, and Tesla has been accused of violating labor legislation after allegedly letting over 500 Gigafactory employees go. The corporate additionally misplaced its head of AI earlier this month.
It hasn’t all been unhealthy information, although. Tesla’s partnership with Uber and Hertz, the place certified rideshare drivers can hire the EVs to ferry passengers round in, appears to be going properly primarily based on a report from Uber in June. It additionally looks as if 2022 would be the 12 months non-Tesla EVs will get entry to the Supercharger community within the US, primarily based on a reality sheet launched by the White Home.
The corporate can be discussing its Q2 outcomes on an investor name at 5:30PM ET / 2:30PM PT, which you’ll be able to hearken to right here.