Despite repeated confinements in China and the endless shortage of electronic components, the American car manufacturer specializing in electric cars posted a better second quarter than expected. The difficulties of Tesla and its leader Elon Musk are real.
Tesla posts healthy profit despite drop in deliveries
In a press release published on July 20, 2022, Tesla reported its results for the second quarter of 2022. For the period between April and June 2022, Tesla’s net profit amounted to $2.3 billion. A figure almost twice as high as the same period last year. Nevertheless, the company’s profits did not reach a record unlike the last six quarters when Tesla posted higher net profits than the previous quarter.
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These results are explained by an 18% drop in deliveries compared to the last quarter, due to the closure of the Shanghai factory for several weeks, due to confinement. The company delivered a total of 254,695 vehicles in the second quarter of 2022, an honorable figure. Small disappointment for the company at the level of its turnover pointing to 16.9 billion dollars.
In an attempt to cope with the shortage of semiconductors affecting the automotive sector, Tesla announced in June the reduction of approximately 3.5% of the workforce and the increase in the price of its cars, rising to 48,840 dollars for the cheapest model.
Elon Musk sold three quarters of Tesla’s Bitcoins
The most surprising event of the second quarter of 2022 at Tesla is the announcement of the sale of nearly 75% of the firm’s Bitcoin assets for a value of $936 million. His current holdings are now valued at $218 million. In all, the company owns 10,725 bitcoins, compared to 42,902 in January 2021. Note that the company had purchased $1.5 billion worth of Bitcoin by the end of 2020.
Elon Musk clarified the sale of these bitcoins en masse: “ The reason we sold some of our bitcoin holdings was because we didn’t know when the Covid-19 lockdowns in China were going to ease. It was therefore important for us to maximize our cash position, given the uncertainty of the Covid-19 restrictions in China. “. The CEO of Tesla does not hide it: the depreciation of bitcoin, which lost nearly 70% of its value in six months, hurt Tesla’s profitability in the second quarter.
Bitcoin and Elon Musk is a long story. If at the beginning of 2021, it was possible to buy a Tesla vehicle thanks to Bitcoin, Elon Musk had changed his mind during the year, considering cryptocurrency as too energy-intensive and not ecological enough.
No Tesla Cybertruck before the second half of 2023
In parallel with the announcement of the results of Testa for the period April / June 2022, Elon Musk took the opportunity to give news of the Cybertruck. The boss of SpaceX told investors that he hopes that deliveries of his 100% electric pickup can begin from mid-2023. It has now been more than three years since the firm announced to the general public the imminent arrival of the Cybertruck, its audacious all-terrain vehicle.
Finally, Tesla referred to its division dedicated to the solar tiles that it has on the roof of its vehicles. The department had a record quarter, increasing the deployment of its technology by 25% compared to the same quarter last year. In all, the equivalent of 106 megawatts were installed between April and June 2022. Positive results, despite the fact that its solar panels are under investigation in the United States. Tesla’s balance sheet is finally positive, despite a difficult economic situation.