New York
CNN
—
Tesla reported a much bigger than expected increase in profits, despite a series of price cuts that trimmed the amount of revenue per vehicle sold.
Tesla
(TSLA) reported adjusted earnings of $3.1 billion, or 91 cents a share, up 20% from the second quarter last year. Analysts surveyed by Refinitiv had forecast earnings of 82 cents a share.
Its profit margin of 18.2% was also better than expected, although profit margins were still smaller than they were last year due to the series of price cuts the company announced since earlier this year. A year ago, Tesla’s margin was 25%, and even reported a 19.3% profit margin in the first quarter, when it first started to put the price cuts in place. But the forecast was that the continued price cuts would drop the profit margin under 17% in the most recent quarter.
Automotive revenue was up 47%, excluding revenue from the sale of regulatory credits. But that was far less than the 83% jump in the number of vehicles sold, a sign that Tesla continues to drive greater demand for its cars though lower prices.
The price cuts came as the company faced increased competition in EV offerings from established automakers, as well as rising interest rates that drove up the cost of purchasing a car for most buyers, as well as economic uncertainty.
“Our operating margin remained healthy… even with price reductions in Q1 and early Q2,” the company said in a statement. It said it achieved this with ongoing cost reduction efforts, the continued production ramp ups at factories in Germany and Texas that opened last year, and strong performance in its other businesses, including energy and services.
“The challenges of these uncertain times are not over, but we believe we have the right ingredients for the long-term success,” the company’s earnings statement said.
Shares of Tesla were narrowly higher in after-hours trading, after closing down 1% on the day ahead of the report. Shares are up 136% so far this year through Wednesday’s close, a dramatic turnaround from the 65% drop in value last year.
This is a developing story and will be updated…
Sumber: www.cnn.com
