The company’s second quarter earnings met analysts' estimates despite a prolonged shutdown of its plant in Shanghai because of COVID-19 lockdowns. Tesla reported revenues were $16.9 billion compared to expectations of $17 billion. Profits came in at $2.27 per share compared to expectations of $1.81 per share.
Earlier this month, Tesla reported vehicle deliveries of 254,695 vehicles for the second quarter, which is a 27% increase from a year ago, but an 18% decrease from the prior quarter.
Automotive gross margins at Tesla came in at 27.9%, down from 32.9% last quarter and 28.4% a year ago. The company said margins were hurt by inflation and more competition for battery cells and other components.
Tesla also said the company sold 75% of its Bitcoin holdings, which added almost a billion dollars of cash to its balance sheet. In a conference call with analysts, Elon Musk said the company sold the cryptocurrency because it wasn’t certain when the COVID-19 lockdowns in China would end, and it was important for Tesla to maximize its cash position.