Tesla share price powers up on 42% revenue jump

The Tesla Inc (NASDAQ: TSLA) share price is rising today on the back of the electric vehicle giant’s quarterly results.

Tesla shares are climbing 1.45% in after-hours trade on the Nasdaq Composite (NASDAQ: .IXIC) to $753.30 at the time of writing. On Wednesday in the United States, Tesla shares climbed 0.8% to $742.50.

Let’s take a look at what Tesla reported to the market.

Tesla reports quarterly results

Highlights of the Tesla Q2 2022 results include:

• Total revenue of $16.93 billion, up 42% year on year, down 10% on the previous quarter
• Net GAAP income of $2.26 billion, up 98% year on year, down 32% on the previous quarter
• Total gross profit of $4.2 billion, up 47% year on year but down 22% on the previous quarter
• Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $5.023 billion
• 14.6% operating margin
• Cash of $18.9 billion
• Adjusted earnings per share (EPS) of $2.27

What else did Tesla report?

Elon Musk’s Tesla produced 258,580 vehicles in quarter two, up 25% year on year but down from 15% in the previous quarter. Of these vehicles, 254,695 were delivered.

The company made “significant progress” in the second quarter. However, there were also challenges, including shutdowns, global supply chain disruptions, and labour shortages.

Shanghai was shut down for most of the quarter, limiting production. However, to end the quarter, Tesla achieved record monthly production in Shanghai.

In the US, the Fremont Factory produced record vehicle numbers in the second quarter.

New factories in Berlin-Brandenburg and Austin ramped up in the quarter. In one week, Tesla managed to produce more than 1,000 vehicles at the Berlin gigafactory.

Energy storage deployments fell 11% year on year, while solar distribution jumped 25% year on year.

Tesla converted 75% of its bitcoin purchases into fiat currency, adding $936 million to the cash balance sheet.

What’s ahead?

In what could spell good news for the Tesla share price, the company said recent upgrades in Shanghai will lift the production rate from this factory in the future.

In Europe, Tesla can see the production rate increasing through the year.

In the US, Tesla sees opportunity to boost production rates. For example, in Texas, the company can now produce vehicles with either structural batteries or legacy battery. Tesla added:

The next generation of 4680 battery cell machinery has been installed in Texas and is in the process of commissioning. Factory output in Texas continues to grow.

Overall, Tesla is planning to boost manufacturing as “quickly as possible”. The company is forecasting it can achieve a 50% increase in the average annual growth rate of vehicle deliveries.

Commenting on the overall outlook, Tesla said:

We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses.

The pace of production ramps in Austin and Berlin-Brandenburg will be influenced by the successful introduction of many new product and manufacturing technologies in new locations and ongoing supply chain related challenges.

Tesla share price snapshot

The Tesla share price has jumped 13% in the past year, while it has fallen 38% year to date. However, in the past month, Tesla shares have climbed 4%.

For perspective, the Nasdaq Composite has lost 19% in a year and nearly 25% year to date.

The post Tesla share price powers up on 42% revenue jump appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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