Tesla Revenue Grows, Sells Bitcoin

Tesla's second-quarter earnings beat analysts' expectations

Tesla (TSLA) shares climbed 2% in pre-market trading after the electric vehicle company reported its revenue grew 42%, though its margins have declined. 

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. 

Tesla Stock YTD
Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.