Tesla’s revenue soared 10 times in the second quarter and broke 1 billion for the first time, but it suffered a miserable investment in Bitcoin

Can Tesla, who is walking on the “wild road”, continue to keep advancing all the way?

Can Tesla, who is walking on the "wild road", continue to keep advancing all the way?
Can Tesla, who is walking on the “wild road”, continue to keep advancing all the way?

Text|Juny Editor|Lianzi

Although deep in the storm of “rights protection door” and security doubts, the position of Tesla’s electric car boss does not seem to be significantly shaken. After the US stock market today, Tesla announced its second-quarter earnings report that exceeded market expectations. This financial report revealed a lot of Tesla’s current progress and existing problems.

Despite the shortage of chips and auto parts, Tesla’s global production in the second quarter reached 206,421 vehicles, an increase of 151% year-on-year, of which delivered vehicles reached 201304 vehicles, an increase of 121% year-on-year, all setting a quarterly high .

With strong production and sales data, Tesla’s revenue and profit in the second quarter also broke through history. The financial report shows that Tesla’s net income in the second quarter was US$1.14 billion, which was ten times as much as that of the same period last year. This is also the first time that Tesla’s quarterly revenue exceeded US$1 billion. In the second quarter, the vehicle gross profit margin was 28.4%, three percentage points higher than the 25.4% in the same period last year.

Tesla’s revenue in recent years, the picture is taken from Tesla’s second quarter earnings report
Tesla’s revenue in recent years, the picture is taken from Tesla’s second quarter earnings report

But at the same time, Tesla also disclosed that the company still faces challenges such as consumer sentiment in the Chinese market, problematic vehicle recalls, and supply chain shortages. Although the financial report is eye-catching, today’s Tesla stock price is still relatively “restrained.”

In addition, in this quarter’s financial report, Tesla also gave answers to questions about its cryptocurrency holdings, FDS progress, global factory construction, and the launch of Semi trucks.

Picture taken from Robinhood
Picture taken from Robinhood

|China’s market share climbs, Semi electric truck is postponed again

Among Tesla’s current models on sale, Model 3/Y is still the absolute protagonist. Among the total of 201304 vehicles delivered in the second quarter, Model 3/Y reached 199409, a year-on-year increase of 148%. Model S/X delivered 1,895 vehicles, down 82% year-on-year. Tesla expects this year’s total deliveries will increase by more than 50% year-on-year.

In the most important European, North American and Chinese markets, despite the recent consumer controversy in China, more and more Chinese car owners still choose Tesla. In the second quarter of this year, Tesla’s market share in China has surpassed Europe, becoming the second largest consumer market after North America.

After the “rights protection door” incident, Tesla’s sales in China fell sharply in April. However, under subsequent loan activities and end-of-season promotions, Tesla’s car sales rebounded in May and June, and this month it officially launched a cheaper version of Model Y in the Chinese market.

Picture taken from Tesla's second quarter earnings report
Picture taken from Tesla’s second quarter earnings report

In the quarterly report, Tesla’s sales forecasts were not affected by the negative storm at all, and it was believed that the supply of Tesla vehicles was less than demand on a global scale. At present, the construction of Tesla’s major global factories is also continuing to advance, and the production potential has yet to be further released.

In addition to the current annual installed capacity of 600,000 vehicles in the California plant (including 100,000 Model S / Model X and 500,000 Model 3 / Model Y), and the Shanghai plant Model 3 / Model Y greater than 450,000 , Part of the Gigafactory in Texas, USA has been commissioned in the second quarter, and the progress of the Berlin plant has also been further accelerated, but the official commissioning time of the two plants has not been announced.

But regarding the new business line that the market is very concerned about-the trend of electric truck Semi, today Tesla said that due to the limited battery supply and the shortage of the global supply chain, the official large-scale marketization of the Semi truck project will be postponed to 2022. .

I have to say that Semi’s road to marketization has been extremely bumpy.

As early as 2017, Tesla publicly released the production model of the Semi electric truck. The cruising range of the two versions are 300 miles (approximately 482 kilometers) and 500 miles (approximately 804 kilometers), and the prices are respectively $150,000 and $180,000. It is located on a Class 8 truck with a load capacity of 80,000 pounds. At the press conference, Tesla announced that Semi will land on the market in 2019 and will begin accepting orders immediately.

Semi truck displayed at the 2017 conference, the picture comes from Techcrunch
Semi truck displayed at the 2017 conference, the picture comes from Techcrunch

Since then, Tesla has successively won orders from companies such as Wal-Mart and Pepsi. But in 2019, Semi was unable to deliver due to capacity issues, and the date was pushed back and forth. Tesla first postponed the sale date to 2020 and then to 2021. After a few years, there was still no movement.

Originally, in March of this year, it was reported that the Semi production line near the Nevada plant would be officially opened, which made customers really excited, but today it was announced again that it will be postponed to 2022. I don’t know what it feels like in the heart of Semi’s biggest customer, Pepsi.

|Investment in Bitcoin lost 23 million, FSD 9.1 version will be launched at the end of the month

As a “big coin speculator” who once drove the skyrocketing Bitcoin with its own efforts, in this round of digital currency plummet, how much money Tesla lost is a key issue of concern to many people who eat melons.

In the first quarter of this year, Tesla’s financial report showed that it purchased approximately US$1.5 billion in digital assets and sold approximately 10% of Bitcoin worth US$272 million. This resulted in a net gain of US$101 million in the first quarter. income. However, after suffering the collapse of the currency circle in the second quarter, Tesla today stated that its bitcoin-related assets were impaired by 23 million U.S. dollars, and the current digital asset value held by Tesla is 1.311 billion U.S. dollars.

This also reflects from the side that, although Musk has repeatedly cryptically stated on Weibo that he would “break up” with Bitcoin and criticize Bitcoin for energy consumption, he really did not sell any Bitcoin in the end, as he said. assets. In the second quarter of this year, Tesla neither sold nor bought Bitcoin, and was in a wait-and-see state.

It should be noted that Tesla does not treat Bitcoin as a market value asset, which means that only when the company sells Bitcoin will the revenue be recognized. In other words, as long as Tesla does not sell its holdings, the decline in the value of Bitcoin will not affect its earnings, and there will be no loss if it is not sold.

In addition to Bitcoin, the progress of Tesla’s Fully Autonomous Driving System (FSD) is also a part that is closely watched by the market.

On July 10, Tesla began to officially push the FSD Beta 9.0 version in the United States, and selected some users for testing. FSD Beta 9.0 is known as the fully automated driving software version with the largest technological change in history. Its biggest feature is that it eliminates lidar and millimeter wave radar as assistance, and only needs “camera + AI algorithm” to complete “automatic driving”. Last year, Tesla raised the price of FSD to 10,000 US dollars, and now users can also subscribe to the service at a monthly price of 199 US dollars. 

At the financial report, Musk said: “After selling more than 1 million cars equipped with radar, we collected enough data to start removing the radar in some areas and successfully launched FSD Beta 9. We think FSD subscription may be possible. It will become an important source of profit next year.”

After less than a month of testing, the user feedback collected by FSD beta V9 is not bad. In the actual test videos of many car owners, it can be seen that the intelligence and fluency of Tesla vehicles with the latest version of FSD have been significantly improved.

FSD is also considered by many analysts to be the place where Tesla has the greatest potential for value-added in the future. According to the latest analysis report released by research institution Loup Ventures, they expect that 80% of Tesla vehicles will be equipped with FSD by 2031, and purchases and subscriptions from FSD by 2032 are expected to bring Tesla $102 billion in profits .

However, FSD has also been subject to security doubts and criticism from public opinion. Tesla’s “wild road” that allows untrained users to test the new system is considered irresponsible for public road safety. After all, car companies such as Waymo and Cruise will follow the safety test rules when conducting software tests, and ensure the safety of software operation through simulation tests, closed road tests, etc., and will not be introduced to the market until the tests pass. Tesla It’s like treating ordinary car owners as “guinea pigs.”

In response to this question, Musk reminded users to be more careful when using the new system, but also said that FSD Beta V9 will continue to be updated and upgraded. Just last Saturday night, Musk posted on Weibo that the FSD Beta V9.1 version will be officially launched on July 30 and will be open to upgrades for more users.

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Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/teslas-revenue-soared-10-times-in-the-second-quarter-and-broke-1-billion-for-the-first-time-but-it-suffered-a-miserable-investment-in-bitcoin/
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