Tesla’s Q2 Net Income Surpasses $1 Billion For The First Time

Electric vehicle maker Tesla (NASDAQ:TSLA) reported second-quarter earnings that beat analysts’ expectations in terms of both revenue and earnings per share (EPS).

The company’s revenue totaled $11.96 billion U.S. compared to $11.30 billion U.S. that had been forecast by analysts. Earnings per share came in at $1.45 U.S. versus $0.98 per share that had been expected, according to Refinitiv data.

Tesla also reported $1.14 billion U.S. in net income for the quarter, the first time it has surpassed $1 billion U.S. In the year earlier quarter, net income amounted to $104 million U.S.

Overall, automotive revenue came in at $10.21 billion U.S., of which only $354 million U.S., about 3.5%, came from sales of regulatory credits. That’s a lower number for credits than in any of the previous four quarters.

Automotive gross margins were 28.4%, higher than in any of the last four quarters.

Tesla had already reported deliveries (its closest approximation to sales) of 201,250 electric vehicles, and production of 206,421 total vehicles, during the quarter ended June 30th.

The company also reported $801 million U.S. in revenue from its energy business, including solar photovoltaics and energy storage systems for homes, businesses and utilities, an increase of more than 60% from the previous quarter.

Tesla also reported $951 million U.S. in services and other revenues. The company operates 598 stores and service centers, and a mobile service fleet including 1,091 vehicles, an increase of just 34% from a year ago.

The company’s cash position decreased about 5% from last quarter to $16.23 billion U.S. The decline was "driven by net debt and finance lease repayments of $1.6 billion U.S., partially offset by free cash flow of $619 million U.S.," the company said in its earnings statement.