Tesla shares pop after hours following earnings report

Jed Dorsheimer, an analyst for Canaccord Genuity, joins Closing Bell to discuss Tesla’s earnings report. Canaccord upgraded Tesla stock nine months ago. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

Tesla reported second-quarter earnings after the bell Monday, and it’s a beat on both the top and bottom lines. Shares rose about 2% after-hours. Here are the results.

Earnings: $1.45 vs 98 cents per share adjusted expected, according to Refinitiv
Revenue: $11.96 billion vs $11.30 billion expected, according to Refinitiv
The company reported $1.14 billion in (GAAP) net income for the quarter, the first time it has surpassed $1 billion. In the year-ago quarter, net income amounted to $104 million.

Overall automotive revenue came in at $10.21 billion, of which only $354 million, about 3.5%, came from sales of regulatory credits. That’s a lower number for credits than in any of the previous four quarters. Automotive gross margins were 28.4%, higher than in any of the last four quarters.

Tesla had already reported deliveries (its closest approximation to sales) of 201,250 electric vehicles, and production of 206,421 total vehicles, during the quarter ended June 30, 2021.

The company also reported $801 million in revenue from its energy business, including solar photovoltaics and energy storage systems for homes, businesses and utilities, an increase of more than 60% from last quarter.

While Tesla does not disclose how many energy storage units it sells each quarter, in recent weeks CEO Elon Musk said, in court, that the company would only be able to produce 30,000 to 35,000 at best during the current quarter, blaming the lag on chip shortages.

Tesla also reported $951 million in services and other revenues. The company now operates 598 stores and service centers, 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 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.

During the quarter, among other challenges, Tesla faced a backlash from consumers in China, recalls in China and the U.S., and delayed deliveries of the high-performance version of its flagship sedan, the Model S Plaid.

Institutional and retail investors asked for updates on when the company plans to start commercial production of its Cybertruck and custom battery cells, and how Tesla will weather ongoing parts shortages and the rising cost of raw materials that Musk previously complained about.

Parts shortages have been stubbornly persistent for Tesla and other automakers. In its shareholder deck, Tesla said that it had delayed the launch of the Semi truck program until 2022.

On the shareholder call Monday, Musk said a “big struggle this quarter” was to procure enough modules that control the airbags and seatbelts in Tesla vehicles. The lack of supply limited the company’s production both in Fremont, California, and Shanghai.

Musk also said that many fans ask why Tesla doesn’t just make its own chips to avoid shortages. He said that supply chain issues are something Tesla will solve with suppliers, laughing that “It’s not like you can just whip up a chip fab.”

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38 thoughts on “Tesla shares pop after hours following earnings report”

  1. "Can the one stock that is destroying our ad revenue base… can it be stopped. Can't we keep saying the competition is coming…. and stuff…. even tho we really know the competition is Tesla?"

  2. Hahaha guy who launched space+x and the first to have reusable rockets come back to the launch pad . Earlier on he also became chairman of Tesla (think during or after lotus Days)… And these guys do called "analysts" trying to predict up or down of Tesla. Geeez, let me go listen to some classical rock or music (they don't even make that decently anymore). Hooray ? for ? SpaceX and ?? n solar n powepacks n best industry software in terms of powerpacks and mega packs.

  3. Tesla beat Walstreet estimates for earnings/share by 50%, which is HUGE. Yet, stock barely moved up 2%. Legacy analysts are sleeping on Tesla. Wait until the company pops in 2022! I will cover it all in my channel with our community.??

  4. ?????? The semi is delayed
    ?????? The CyberFlop is delayed
    ?????? Level 3 FSD is delayed
    ?????? Robo Taxis are delayed
    ?????? This company is all about delays. All talk, no action. Looks like it's time to cancel my CyberFlop preorder, and get something that will be on time. Everyone should do the same like me to teach this company to stop making promises that it can't keep. Do they think that we are fools? Suckers? Is this a joke? How shameful. What a disgrace!

  5. I wish CNBC and others would provide an objective ranking/scorecard for these analysts. Very few provide consistent high-quality assessments that an investor can rely on for more informed trades.

  6. CNBC host trying to determine the fair value of a $630 billion company based on the after-hours mood. “What’s up with the stock?” As if price moves over a 10-minute period are an excellent reflection of the competitive dynamics. SMH for the last few decades on how businesses are covered like short-term lottery tickets.

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