Tesla delivers outstanding financial results for the second quarter of the year. The company reported higher revenues and gross profit when compared to the same period last year and Q1 2021.
One of the highlights of the current trading week was the release of Tesla’s Q2 2021 earnings. Tesla stock price was one of the investors’ darlings in the past year, outperforming the industry peers by a mile. Currently, it is up over 132% in the last 12 months and slightly down for the current year.
Since the $1.1 billion investment in Bitcoin in the first quarter of the year, investors in the cryptocurrency market have looked closely at Tesla’s earnings. More precisely, the forward-looking statements may contain the company’s plans regarding its Bitcoin holding. For the second quarter, Tesla reported an impairment of $23 million related to the value of its Bitcoin holdings, which makes the $1.3 billion operating profit even more impressive.
Highlights of Tesla’s Q2 2021 Earnings
A few things stand out from the crowd when it comes to Tesla’s Q2 2021 earnings. First, the automotive revenues almost doubled compared to the same period last year. More precisely, they are up 97% YoY. Second, gross profit more than doubled, up 120% YoY.
But, the biggest surprise is the sharp decline in regulatory credits. Its detractors often accused Tesla that the bulk of its revenue comes from selling regulatory credits to other companies in the industry.
In the second quarter of the year, the revenues from regulatory credits declined sharply, down 17% YoY and much lower than the first quarter.
How Do Analysts See Tesla Stock Price after the Earnings?
Analysts have mixed opinions about Tesla stock price. The price range is so wide that some, like J.P. Morgan, have a sell recommendation with a target of $160, while others, like Capital Depesche, have a buy recommendation with a price target of $974.
All in all, Tesla delivered impressive results for the quarter. Despite challenges, such as the semiconductors shortage, the company managed to beat expectations and report a hefty profit.