Tesla slams on the accelerator: record delivery, net profit soared by 10 times, car making can really make money

The phone conference hinted that the second half of the year might be better.

The harder you scold, the better you sell. Tesla has repeatedly verified how unreliable the “public opinion sentiment” is.

On July 2, Tesla announced a very eye-catching Q2 sales and delivery data. Both indicators exceeded 200,000, setting a record high and exceeding market expectations. Driven by the high delivery volume, Wall Street has given very high expectations for Tesla’s performance this quarter, and it is expected that Tesla’s Q2 revenue can achieve a substantial growth of 86.4%.

Tesla’s actual performance even exceeded expectations. According to the financial report disclosed by Tesla early this morning, many of its indicators have refreshed history:

  • In the second quarter of 2021, Tesla achieved total revenue of US$11.958 billion, a year-on-year increase of 98%;
  • Operating profit reached 1.312 billion U.S. dollars, a year-on-year increase of 301%, and operating profit margin reached 11%;
  • The net profit attributable to the parent reached US$1.142 billion, a surge of 998% year-on-year.

However, although Wall Street recognizes the growth of Tesla’s performance, it has not projected this “recognition” into actual sales, and analysts have mixed opinions on Tesla. According to Seeking Alpha, the average target price given to Tesla by Wall Street is US$659.83, which is not much room to float over the current price of Tesla. At the beginning of the year, Tesla had reached a high of US$800.

Tesla’s performance disclosure and strategic nodes often trigger a war of words between bulls and bears. This time is no exception. From the data level, the Q2 financial report is considered positive across the board, but combined with market performance and strategic direction analysis, Tesla’s advantages and anxiety are equally obvious, and doubts and pursuits still accompany.

Delivery volume is new high, but danger is approaching

Even under the storm of public opinion, Tesla is still the world’s best-selling new energy car company. According to the financial report, Tesla delivered a record 201,000 vehicles in the second quarter, a year-on-year increase of 121% and a month-on-month increase of 8.9%.

From the perspective of the model structure, the proportion of Model 3&Y has been further expanded to 99.1%; and the actual delivery of Model S&X in the second quarter was only 1,895 units, mainly because the Model S only started to be delivered in mid-June after the facelift. In addition, according to the latest news, some Tesla Model S buyers have been told that the delivery of their new cars will be suspended, which means that the delivery of this model will not be fully released in the next quarter.

But this does not affect Tesla’s “scale effect” to continue to play a role. With the launch and best-selling of Model Y, with the support of the X&Y models, Tesla is further moving towards the direction of expansion of scale effect and diminishing marginal costs-lower costs, lower average selling prices of bicycles, and higher sales in exchange for higher operating prices. Revenue scale and gross profit level.

In Q2 of 2021, with the delivery volume reaching a new high, the average selling price of Tesla’s bicycles is still controlled below US$50,000. Due to the increase in the price of bicycles under the pressure of the supply chain and the increase in the proportion of Model Y sales, this One data has a slight increase compared to Q1.

Tesla slams on the accelerator: record delivery, net profit soared by 10 times, car making can really make money

This quarter’s gross profit performance fully verified Tesla’s car-making logic based on boundary benefits.

Thanks to higher deliveries, in Q2 of 2021, Tesla’s vehicle sales revenue reached 9.874 billion U.S. dollars, driving Tesla’s total revenue to increase by 98% year-on-year to 11.957 billion U.S. dollars; gross profit from vehicle sales reached 2.76 billion U.S. dollars The gross profit margin of car sales reached 27.9% again. Tesla’s cost control capabilities and pricing strategies in the car manufacturing process have become more refined, and its gross profit has become better and better as its sales expand.

Tesla slams on the accelerator: record delivery, net profit soared by 10 times, car making can really make money

Tesla slams on the accelerator: record delivery, net profit soared by 10 times, car making can really make money

Tesla’s car sales are booming, but at the moment when the track is getting more crowded and the competition is getting fiercer, Tesla’s market performance cannot be seen separately. The overall rise in the new energy vehicle market is an important background for Tesla to achieve record delivery results.

In this case, the fluctuation of Tesla’s market share may be more valuable than the change in delivery.

This is also an important reason why the bears are worried about Tesla’s future. In the two most important markets, the United States and China, Tesla has encountered a crisis in its market share.

In the United States, Tesla’s new car registrations rose by 80% in May this year, while the total number of electric car registrations in the market rose by 116%. Tesla’s lagging behind the market as a whole needs to be attributed in part to the fact that Model S&X models slipped out of the best-selling list due to the facelift. On the other hand, it is also because of competitors such as Ford Mustang Mach-E, Audi e-tron and Porsche Taycan. Formed a powerful impact.

In China, “Tesla’s Chinese apprentices” are growing rapidly. Although there is still a gap in sales volume compared with Tesla, the growth rate is even more rapid than that of Tesla: Weilai set a new record of 2,060 in the first quarter The quarterly delivery volume recorded a year-on-year increase of 422.7%, and Q2 also maintained a year-on-year growth rate of 111.9%; the ideal year-on-year growth rates for the two quarters were 334.4% and 166.1% respectively. Q2 set a new quarterly delivery record; Xiaopeng two quarters The year-on-year growth rate was 487.4% and 439%.

Not only Tesla, but new car manufacturers are constantly refreshing their quarterly delivery records. In the long run, the gap between “Wei Xiaoli” and Tesla in the domestic market is gradually narrowing.

Tesla slams on the accelerator: record delivery, net profit soared by 10 times, car making can really make money

Of course, Tesla is also aware of the hidden crisis under the declining market share, and once again wields the “price sickle”. At the beginning of July, Tesla released the domestic Model Y standard battery life version, the starting price after subsidies was 276,000, which is more than 70,000 yuan lower than the long battery version previously launched. SUVs are the most popular models among Chinese consumers. The launch of the Model Y standard battery life version directly led to the “explosive orders” on the official website.

Relying on price cuts to increase sales is Tesla’s tried and tested routine. Model Y prices are dropping, which will put greater pressure on Weilai and ideals, which are also the main SUVs. In addition, Ford Mustang Mach-E, Volkswagen ID.4, etc. Hot-selling models will also compete with the domestic Model Y in the same price range. But what will also be staged at the same time is the mutual dumping of Tesla’s own products.

No matter where Tesla can push the price of electric vehicles down, what cannot be changed is that as more and more electric vehicles are available on the market, the glorious situation of a Model 3 sweeping the world will no longer appear.

Q2 Selling points and speculating coins did not make a profit, and the net profit still doubled tenfold

In the last quarter, Tesla made a huge profit of 101 million U.S. dollars by speculating on Bitcoin, which pushed the net profit attributable to ordinary shareholders under Tesla’s Non-GAAP to a year-on-year increase of 363.4%.

But like all “leeks” players, it is impossible to make money by speculating on coins regularly and continuously. In this quarter, Tesla did not buy or sell Bitcoin held. The financial report showed that as of Q2, Tesla’s net digital assets were worth 1.322 billion U.S. dollars, and Bitcoin-related impairment losses were 23 million U.S. dollars.

However, under the leadership of “coin speculator” Musk, Tesla is still a loyal fan of cryptocurrency. At The B Word Bitcoin Conference on July 21, Musk reiterated his support for Bitcoin, Ethereum and Dogecoin, saying that if the cryptocurrency depreciated, he would personally lose money, and said that if the production of Bitcoin can To ensure the use of a higher proportion of renewable energy, Tesla will resume payments in Bitcoin.

Also attending this conference was Cathie Wood, known as the “female Buffett”. You know, she is also a well-known big head of Tesla while watching more bitcoins. July 7 Today, Cathy Wood bought about $71.38 million worth of shares in Tesla when Tesla’s stock price fell.

Bitcoin is more like a capitalist’s game. The rise and fall are unpredictable. What is certain is that Tesla is more and more closely tied to cryptocurrency.

Tesla slams on the accelerator: record delivery, net profit soared by 10 times, car making can really make money

In addition, the benefits of carbon credits for Tesla are not as good as the previous quarters. In Q2 of 2021, Tesla’s revenue from “selling points” was US$354 million, down 17% year-on-year and 32% month-on-month.

In terms of expenses, Q2 Tesla was particularly cautious in spending money. The R&D expense ratio was 4.8%, the same as last year’s average; sales and management expenses fell to a low of 8.1%.

This also reflects the most commendable part of Tesla’s earnings this quarter. Tesla really relied on the main business of “car building” to boost revenue and profits, the delivery volume hit a new high, it overcomes the rising trend of material costs, and its expenses are properly controlled. Projects such as Bitcoin and carbon credits are reported in this financial report. The presence in China is not strong. Even if carbon credits are excluded, the gross profit margin (Non-GAAP) of Tesla’s automotive business has reached 25.8%.

This can shut up some people who have long criticized Tesla for not making money from actual car sales. Car sales in the quarter drove Tesla’s very good profit performance:

  • In Q2 of 2021, Tesla will achieve a net profit of 1.178 billion U.S. dollars, with a net profit margin of 9.9%;
  • In Q2 of 2021, Tesla achieved a non-GAAP net profit attributable to ordinary shareholders of USD 16.16, corresponding to a net profit margin of 13.5%.

Tesla slams on the accelerator: record delivery, net profit soared by 10 times, car making can really make money

FSD has mixed reputations, but the future cannot be underestimated

Unlike last quarter, which made a lot of money by speculating on coins, Tesla’s high growth in net profit this quarter is really driven by the auto sales business. However, Tesla has never been satisfied with its status as a “car company”. Its extremely high valuation in the secondary market also shows that investors are more willing to treat Tesla as a technology company.

Therefore, FSD (Fully Automated Driving Technology) is also the key to anchoring Tesla’s future value.

Although the income generated by FSD at this stage does not have the scale, compared with the hard work of building a car, software subscription is a higher gross profit and sustainable business. To put it simply, as a technology company, Tesla lowers prices and expands sales. One of its functions is to make car products equipped with software have a large enough scale. The ultimate goal is to generate more software through more software subscriptions. profit.

Tesla has a mostly well-known head, a technology analyst Keith Munster (Gene Munster) even wrote that in the near future, after ten years, FSD annual operating profit will bring more than $ 100 billion, just this The market value of the service will reach 850 billion US dollars, surpassing the current market value of more than 600 billion US dollars of Tesla.

This data looks a bit exaggerated, but it does point to Tesla’s future direction. Just a few days ago, on July 23, Tesla’s FSD Beta 9 was officially released, priced at $10,000. In addition, Tesla also added a subscription service model in July. Users can access its premium for $199 per month. The upgraded version of the driving assistance system reduces the barriers to entry for customers while obtaining more stable recurring income.

In the Q2 earnings conference call, Musk also reiterated his optimism about the future of FSD, saying that “FSD will be the main service content provided by the company”, and does not believe that the regulatory level will constitute a “fundamental restraint.”

Of course, Tesla FSD is not mature at this stage. For example, the authoritative American magazine Consumer Reports expressed concerns about the performance and safety of FSD Beta 9. In addition, V9 has completely abandoned the radar input and relies entirely on the car’s camera. This technical route is still subject to many controversies. For software subscriptions to support revenue in the future, Tesla also needs to invest more funds, talents, and time to improve its products.

But Tesla obviously will not lose its “technological” attributes. FSD must be one of the keys to determining Tesla’s future value-I would like to ask, if it is just selling cars, the quarterly delivery volume has just exceeded 200,000 car companies. Why is it to hold up the market value of 600 billion?

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/tesla-slams-on-the-accelerator-record-delivery-net-profit-soared-by-10-times-car-making-can-really-make-money/
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