Tesla shares are up marginally after hours, following a highly-anticipated earnings report.
The company reported an adjusted EPS of $2.27, exceeding expectations of $1.81. However, revenues fell short, coming in at $16.93 billion vs. $17.1 billion expected.
The company noted that it faced many challenges throughout the quarter, with Covid-related lockdowns hampering production in Shanghai and inflation pushing up the costs of ramping up its other factories. Those rising costs impacted gross automotive margins, which have fallen 500 bps YoY to 27.9%. 🔻
However, according to CEO Elon Musk, the company ended the quarter with the highest vehicle production month in the company’s history and has the potential for a record-breaking second half of the year. 👍
Another thing grabbing people’s attention is that Tesla is no longer “hodling” its digital assets, choosing to sell roughly 75% of its bitcoin holdings for $936 million during the quarter. But that shouldn’t surprise us much, given Elon’s “erratic” attention span. 🙃
The reaction to this quarter’s results is calm so far, but we’ll have to see how investors treat the stock in the days/weeks ahead. 👀