Since Tesla profitability seems to be a cause of debate (and misunderstanding) here, the Q2 results released today are interesting:

Revenue for the quarter was approximately $12 billion, and net income was $1.1 billion - of which only $354 million was from regulatory credits.

Profits are up more than 100% from Q1 2021, and up over 1000% from Q2 2020.

So can we put the notions that "Tesla is unprofitable" and "Tesla only make money because of credits from other manufacturers" to bed???

 

Yes please. Not a shocker...stock barely moved. This was completely expected from Wall St. as they gain scale. This is before the newer factories come online... BTW, none of this changes the fact that they have been operationally cash flow positive in the last year. Tesla has shown that its here to stay

 

Mysteriously quiet in this thread LOL

 

Tesla has only one problem, can't make products fast enough. Which in reality is a whole pile of problems they are battling chip shortages, battery shortages, regulatory red tape etcetera. Elon sounded extremely frustrated on the earnings call I imagine anyone would be when you're forced to leave so much money on the table. Tesla energy is being kicked in the nuts as well due to battery constraints.

One of my predictions will happen (easy call) no Cybertruck this year and I still don't think 4680's will happen this year either. The most interesting thing to me about 4680 is battery partners are free to tweak the chemistry or go in any direction they see fit. And we will see different chemistries depending on range and performance. Not sure if Model Y will see production this year with 4680 cells I'll give that one a 50% chance.

The Tesla will be bankrupts soon ship has certainly sailed same with Tesla can't make a profit.

 

Well, when you've been so wrong on your predictions, it's hard to say anything. Lol. So many short sellers have lost so much. So many doubters eating their words.

 

Is the competition still coming?

On short sellers I think Tesla stock is top 5 for the most losses every incurred by shorties in history.

 

You mean the big boys like Taycan and Etron. Wait...maybe the EQS will bankrupt Tesla now. Hahaha.

 

The FUD has died down to an extent but it will never stop. Tesla doesn't advertise which means they hold no influence over any publication so the only way sites can get clicks involving Tesla is write hit pieces. Remember the Tesla being driven by no one that crashed into a tree? And it burned for hours? Literally fake news, a bunch of people flat out lied. Of course the initial story gets way more views than any correction if it ever happens.

Check this out from 2015

Why Tesla Won’t Be Able to Scale

This is what happens when wishful thinking replaces journalism.

 

Lol. You wonder why Elon has such a low opinion of MBAs and business schools. How embarrassing.

 

This has to be the piece de résistance of them all. From 2013
What a lemon! Tesla’s a $50 stock, analyst says

Imagine how many people took that advice.

 

Its like when the original iPhone came out and some bashed it...they were immortalized for that criticism Funny as the iPhone is the single most successful product in history.

 

great results for tesla.
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question (not criticism) about batteries - why does tesla have a battery shortage? is it lithium availability? i don't really understand their relationship with panasonic, but that's their primary (only?) battery supplier, right? or is it a joint venture? is the nevada gigafactory for battery production, or cars, or both? i honestly don't know.

 

Tesla buys batteries from any supplier that will sell them to Tesla as well as making them in house. There are simply not enough cells that why Tesla energy is suffering, Tesla prioritizes cars over storage.

 

The Nevada gigafactory is primarily battery and they don't have a shortage for their cars...its their Powerwalls. The Fremont and Shanghai factories are at full capacity and their current battery availability is enough to supply all the cars built. The remaining capacity go to Powerwalls and it seems supply can't meet demand as their backlog is huge. The 4680 cell was designed to mitigate this as it has a much higher capacity due to its production process (tabless design). When Austin and Berlin come online, they will have a dedicated 4680 production onsite to meet the demands of those factories.

The Nevada gigafactory is a JV with Panasonic. I hope this clarifies your question.

 

Tesla soundly beat the analysts again. Strong margins; the envy of their peers. GM is increasing due to efficiency, economies of scale and increasing prices.
Importantly, Tesla achieved $1B in GAAP net income for the 1st time. GAAP calculations are from operations; they do not include regulatory credits and other income sources such as investments.

From Barrons:
"Better than expected earnings with lower credit sales means the underlying car business is doing better. Automotive gross profit margins excluding credits were 25.8% in the second quarter. The figure for the previous four quarters, a period ending in March, was about 21.5%. Profitability looks strong.

Cash flow was solid, too. Free cash flow came in at $619 million, up from $293 million in the first quarter. It was the fifth consecutive quarter of positive free cash flow for the company."

Tesla GAAP margins are about 25% vs 11% for their peers (luxury vehicles). This is quite a statistic. Margins should increase as deliveries continue to grow. Wait until Gigafactory Austin ramps...

Going forward, the chip shortage will continue to drag Tesla (and the industry) down. The Semi (Nevada and future Austin) is pushed to next year. I think there are problems in Giga Berlin but Austin should come on line later this year. Of course, in Austin the Model Y will get precedence. 4680 development is critical.

Net net, good news for the bulls and bad for the bears. Again.