In the second quarter of 2022, Tesla sales earned $2.27 billion in adjusted profits per share on $16.95 billion in sales. There has been an increase in EV component rivalry, which has taken a toll on automotive margins. Tesla’s earnings results show improvement in its car sales.
Inflation and competitive pressures for laptop batteries and other materials used in electric cars harmed the automotive gross margin. Gross Margin fell to 27.9% from 32.4 percent last quarter and 28.6 percent a year earlier. Cars accounted for $14. 7 billion of the company’s sales, with $1.48 billion in other revenue and $867 million in the company’s energy sector.
In the second quarter, the business earned $346 million in automobile regulatory credits revenue, according to its shareholder presentation. That’s a drop of $10.5 million, or around 3.5%, from the same time last year.
Tesla Car Sales and Q&A
Tesla Expansion facilities
CEO Elon Musk claimed Tesla’s new plant outside Berlin produced more than 1,500 vehicles per week in June. Elon Musk expects its new facility in Austin, Texas, to do the same in the coming months, during a conference call with investors on Wednesday.
In the second quarter, Tesla sales reported 708 retail and service locations, compared to 3,972 Supercharger sites (36,265 total Supercharger connections) in the first quarter. These figures show an increase in retail and service centre locations of 18% and a rise in charging sites of 35% year on year.
Uncertainty about inflation
These supply chain issues were worsened by the Russian invasion of Ukraine and the Covid outbreaks in China. During the second quarter of 2022, Shanghai’s covid limits led Tesla to briefly cease or curtail production at its Shanghai facility.
On May 31, Tesla CEO Elon Musk criticised the high expenses of production at new facilities in Austin, Texas and Germany. The two new Tesla facilities are “giant money furnaces,” Musk remarked in a meeting with Tesla Ownership Silicon Valley.