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Jun 30, 2021

Tesla Q2 2021 Earnings Report

Tesla broke new records, exceeding $1B of GAAP net income for the first time and achieving an 11.0% operating margin.

Key Takeaways

Tesla's Q2 2021 saw record vehicle production and deliveries, exceeding $1B in GAAP net income for the first time. The company achieved an 11.0% operating margin despite ongoing supply chain challenges.

Record vehicle production and deliveries in Q2.

Successful launch of FSD subscription in July.

Started delivering the new Model S to customers.

$1.3B GAAP operating income; 11.0% operating margin in Q2.

Total Revenue
$12B
Previous year: $6.04B
+98.1%
EPS
$0.48
Previous year: $0.15
+220.0%
Gross Margin
28.4%
Previous year: 21%
+35.2%
Operating Margin
11%
Previous year: 5.4%
+103.7%
Cash Flow from Operations
$1
Gross Profit
$1
Previous year: $1.27B
-100.0%
Cash and Equivalents
$16.2B
Previous year: $8.62B
+88.0%
Free Cash Flow
$619M
Previous year: $418M
+48.1%
Total Assets
$55.1B
Previous year: $38.1B
+44.6%

Tesla

Tesla

Tesla Revenue by Segment

Forward Guidance

Tesla plans to grow manufacturing capacity as quickly as possible, expecting 50% average annual growth in vehicle deliveries over a multi-year horizon. Operating margin is expected to continue growing, reaching industry-leading levels with capacity expansion and localization plans underway.

Positive Outlook

  • Plan to grow manufacturing capacity as quickly as possible.
  • Expect to achieve 50% average annual growth in vehicle deliveries.
  • Have sufficient liquidity to fund product roadmap, long-term capacity expansion plans and other expenses.
  • Expect operating margin will continue to grow over time.
  • Believe we remain on track to build our first Model Y vehicles in Berlin and Austin in 2021.

Challenges Ahead

  • Rate of growth will depend on equipment capacity, operational efficiency, and the capacity and stability of the supply chain.
  • Pace of production ramps will be influenced by the successful introduction of many new product and manufacturing technologies.
  • Ongoing supply-chain related challenges.
  • Regional permitting.
  • Shifted the launch of the Semi truck program to 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income