Tesla Q2 Earnings Report
Tesla has reported $1.14 billion in net income for the second quarter surpassing $1 billion for the first time. The electric vehicle and clean energy firm now boast a market value of roughly $630 billion. Tesla’s July 26, 2021, quarter earnings report showed that total revenue grew by 98% year on year for Q2, increasing from $6 billion (in 2020) to $11.9 billion this year. Tesla has produced and delivered over 200,000 vehicles, achieved an operating margin of 11%, and exceeded $1 billion of Generally Accepted Accounting Principles (GAAP) net income for the first time in history. The total revenue was partially offset by a $23 million loss in Bitcoin and growth in operating expenses.
In February 2021, Elon Musk announced that the company had invested $1.5 billion in digital assets and revealed plans to accept bitcoin as payment. The March quarter earnings report revealed that Tesla had sold 10% of its holdings to prove the liquidity of bitcoin as an alternative to holding cash on the balance sheet. Then in May, Tesla stopped accepting bitcoin as payment over environmental concerns.
Tesla Inc’s July 26, 2021, Q2 earnings showed that Tesla was still holding $1.3 billion worth of bitcoin on its balance sheet. The earning report also shows that Tesla didn’t buy or sell any digital assets in Q2. Tesla’s sole crypto purchase remains its $1.5 billion Bitcoin (BTC) buy in Q1 out of which Tesla cashed out $272 million during the same quarter. On July 22, Tesla’s CEO, Elon Musk, confirmed that both Tesla and SpaceX own bitcoin at “The B Word” conference.