Tesla reported a smaller-than-expected drop in quarterly profit as it recovers from an extended shutdown at its Shanghai assembly plant.
Tesla’s second-quarter profit fell 32% from record levels in the first quarter, with the company reporting a $2.26 billion net profit on Wednesday.
Due to uncertainty about when the lockdown would lift in Shanghai, Tesla said it sold 75% of its Bitcoin holdings to maximize its cash position. “This should not be taken as some verdict of bitcoin,” Musk said in a Wednesday earnings call. “We haven’t sold any of our dogecoin.”
The company posted an adjusted profit of $2.27 per share for the quarter versus analysts’ consensus estimates of $1.81. This was down from $3.22 in the preceding quarter.
Automotive gross margin came in at 27.9%, down from 32.9% last quarter and 28.4% a year ago, impacted by inflation and more competition for battery cells and other components that go into electric vehicles. Automotive revenues made up $14.6 billion of the company’s total, with $1.47 billion coming from services and other revenue, and $866 million from the company’s energy segment.
Tesla’s total revenue fell to $16.93 billion in the second quarter from $18.76 billion a quarter earlier, ending its streak of posting record revenue in recent quarters.
Chief Financial Officer Zachary Kirkhorn said Tesla was still pushing to reach 50% growth in deliveries this year, adding that while the target had become more difficult, “it remains possible with strong execution.”