Tesla surpasses $1B profit for first time

Tesla reports earnings: Up 134% over past year

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Tesla has blown past Wall Street expectations with its second-quarter earnings results, making history with a net profit exceeding $1 billion for the first time. During the quarter, the company produced and delivered over 200,000 vehicles and achieved an 11% operating margin. 

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The electric vehicle maker's second quarter profit came in at $1.14 billion, or $1.02 per share, compared with $104 million or 10 cents a share, a year ago. Adjusted for one-time items, Tesla earned $1.45 a share, compared with 44 cents a share a year ago.

Total revenue came in at $11.9 billion, a 98% year-over-year increase, thanks to substantial growth in vehicle deliveries and other parts of the company's business. Overall automotive revenues came in at $10.21 billion, of which only $354 million came from sales of regulatory credits. As for its energy and storage business, the company posted revenue of $801 million. 

In addition, Tesla reported a Bitcoin-related impairment of $23 million. 

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The better-than-expected earnings results come amid increased scrutiny in China, the delayed rollout of its revamped Model S sedan and Model X SUV and the ongoing impact of a global semiconductor shortage and port congestion. 

Looking ahead, Tesla continues to expect 50% average annual growth in vehicle deliveries, but noted the rate of growth will depend on "equipment capacity, operational efficiency, and the capacity and stability of the supply chain." It also remains on track to build its first Model Y vehicles in Berlin and Austin in 2021. 

"The pace of the respective production ramps will be influenced by the successful introduction of many new product and manufacturing technologies, ongoing supply-chain related challenges and regional permitting," Tesla said.

In order to focus its production in these factories, and due to limited availability of battery cells and its global supply chain challenges, Tesla has shifted the launch of its Semi truck to 2022. Tesla's Cybertruck is slated for production in Austin, Texas following Model Y production. 

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Wedbush analyst Dan Ives called Monday's earnings results a "bullish print that should start to change sentiment on this core EV name to play the green tidal wave for the coming years," adding that the firm maintains an outperform rating and $1,000 price target on Tesla. Wedbush expects a total of 900,000 deliveries for Tesla's annual 2021 numbers.

Tesla shares rose about 2% in after-hours trading following the earnings announcement.

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