Updated at 16:41 EST
Tesla (TSLA) – Get Tesla Inc. Report delivered stronger-than-expected first-quarter results on Wednesday, even though profit margins were reduced due to rising investment costs, sending shares down after trading.
Tesla said adjusted earnings for the three months ending June were tied at $ 2.27 per share, up 56.5% from the same period last year and ahead of the Street Consensus forecast of $ 1.86 per share.
Corporate revenue, Tesla said, rose 41% from last year to $ 16.94 billion, falling outside analysts̵[ads1]7; forecasts of $ 17.2 billion and a record $ 18.76 billion in the first quarter.
Gross margins for the automotive industry were 27.9%, down 500 basis points from last year, Tesla said, just within the Street forecast of 28.2%, due to an increase in input costs and expenses related to the escalation of new factories in Austin and Berlin. To eliminate the effect of emission credit sales, car margins were set at 26.2%, although the average selling price of a Tesla vehicle rose 5%.
“We continued to make significant progress across the business during the second quarter of 2022,” said Tesla. “Although we faced certain challenges, including limited production and closures in Shanghai for most of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $ 621 million and ended the quarter with the highest vehicle production month in our history. “
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Tesla shares were marked 0.75% lower in after-trading immediately after the earnings announcement to indicate a Thursday opening price of $ 737.01 each.
Tesla also said it sold about 75% of its bitcoin holdings by the end of the second quarter, a figure equivalent to about $ 936 million, which was added to the balance sheet.
Estimates of Tesla’s bitcoin carrying costs vary, but the time of purchase suggests a level of around $ 32,600. Of course, this value rose in the second half of 2021, when bitcoin reached a record high of around $ 67,000, but now looks far more fragile after crashing below the $ 20,000 level last month.
Bitcoin prices were last seen 2% lower on the day to $ 23,020 each after the news of Tesla sales.
Tesla, which suffered from supply chain disruptions, chip shortages and a 22-day shutdown at the Giga plant in Shanghai during the three months ended June, saw deliveries fall 17.7% from the previous period to 254,695 units weaker than expected.
Commodity prices, as well as labor costs related to total production cycles, have risen steadily over the past year, while nickel – a crucial component in the production of electric car batteries – is up around 20% to $ 21,200 per tonne on the London Metals Exchange. The prices of lithium carbonate for batteries are up around 60% from the levels in early 2021.
Tesla told investors in April that “the inflationary impact on our cost structure has contributed to adjustments in our product prices, despite a continued focus on reducing our production costs where possible”, and has since started layoffs in California while model S prices has increased. and Model Y sedans.