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. In the letter to traders, Tesla execs reveal the corporate has offered 75 p.c of its Bitcoin holdings, including $936 million in cash to its stability sheet.
Last yr, Tesla made a $1.5 billion investment in Bitcoin and introduced that it could settle for Bitcoin as fee. Tesla began accepting Bitcoin in late March, then abruptly reversed itself in May, simply 49 days later.
In the most recent report, Tesla says the worth of its remaining “digital assets” is $218 million, which it had reported at round $1.2 billion in earlier quarters. Last July, Musk mentioned, “I might pump, but I don’t dump … I definitely do not believe in getting the price high and selling or anything like that. I would like to see Bitcoin succeed.”
When it involves its enterprise of creating electrical vehicles — the place new rivals appear to be introduced every single day — and photo voltaic merchandise, the corporate is reporting that it made $2.26 billion in revenue this quarter, round a 31 p.c decrease from final quarter when it posted profits 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.
In phrases of 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 firm attributes that to a number of elements, together with “lower stock-based compensation expense,” extra automobile deliveries in comparison with final yr, and an improved common promoting worth. This 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. Despite the worth will increase, the corporate has damaged with its development of incomes extra per automobile 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 “limited production and shutdowns in Shanghai for the majority of the quarter” however that it continued to ramp up manufacturing at its new amenities in Berlin and Austin, Texas.
Other difficulties the automaker stories are elevated costs in all the things from uncooked supplies to logistics, increased fastened prices per automobile as a result of closures in Shanghai, and, after all, the aforementioned “Bitcoin impairment.”
Compared to final quarter, the corporate’s income from promoting regulatory credit to different automakers dropped by virtually 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 “clean” autos to fulfill regulatory requirements in the US and EU.
Culturally, it’s been a turbulent quarter at Tesla. In late April, CEO Elon Musk offered billions of {dollars} price of inventory in the corporate to assist pay for Twitter (a deal that has been an enormous mess and is now headed to Delaware’s Court of Chancery after Elon tried to cancel the association). Musk additionally reportedly mentioned he has a “super bad feeling” concerning the financial system when asserting the hiring freezes and layoffs on the firm. Those layoffs have affected the autopilot crew, and Tesla has been accused of violating labor regulation after allegedly letting over 500 Gigafactory staff go. The firm additionally misplaced its head of AI earlier this month.
It hasn’t all been dangerous 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 nicely primarily based on a report from Uber in June. It additionally looks as if 2022 would be the yr non-Tesla EVs will get entry to the Supercharger community in the US, primarily based on a truth sheet launched by the White House.
The firm will probably be discussing its Q2 outcomes on an investor name at 5:30 PM ET / 2:30 PM PT, which you’ll hearken to right here.
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