{"id":23471,"date":"2022-07-21T00:01:05","date_gmt":"2022-07-21T00:01:05","guid":{"rendered":"http:\/\/egrowonline.com\/?p=23471"},"modified":"2022-07-21T00:01:05","modified_gmt":"2022-07-21T00:01:05","slug":"teslas-second-quarter-earnings-hurt-by-supply-chain-problems-and-bitcoin","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=23471","title":{"rendered":"Tesla\u2019s Second-Quarter Earnings Hurt By Supply Chain Problems and Bitcoin"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Tesla said Wednesday that profit in the second quarter fell nearly one-third from the first quarter as deliveries slowed because of shutdowns and raw materials shortages at the carmaker\u2019s factory in Shanghai.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Profit <a target=\"_blank\" class=\"css-yywogo\" href=\"https:\/\/tesla-cdn.thron.com\/static\/EIUQEC_2022_Q2_Quarterly_Update_Deck_J8VLIK.pdf?xseo=&amp;response-content-disposition=inline%3Bfilename%3D%22tsla-q2-22-update.pdf%22\" title=\"\" rel=\"noopener noreferrer\">in the quarter was $2.3 billion<\/a>, Tesla said, compared with $3.3 billion in the first quarter, which was a record. Sales fell to $16.9 billion from $18.8 billion in the first quarter.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The automaker was also hurt by a sharp fall in the price of Bitcoin. Tesla said in early 2021 that it had <a target=\"_blank\" class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2021\/02\/08\/business\/tesla-bought-bitcoin.html\" title=\"\" rel=\"noopener\">invested $1.5 billion in the cryptocurrency<\/a>. The company said on Wednesday that it had sold about 75 percent of its Bitcoin by the end of June.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\" \/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Compared with the second quarter of 2021, profit nearly doubled. And earnings in the quarter exceeded analyst estimates. But because Tesla is a fast-growing company, its progress, or lack of, from quarter to quarter is more closely watched by investors.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\" \/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Tesla dominates the global market for electric vehicles and is growing, while traditional carmakers like Toyota and General Motors record steep declines in sales. But the last quarter was bumpy.<\/p>\n<div>\n<section role=\"complementary\" aria-labelledby=\"styln-toplinks-title\" class=\"css-1iamamn\">\n<h2 id=\"styln-toplinks-title\" class=\"css-4od1bx\">Read More\u00a0About Elon Musk and Twitter<\/h2>\n<\/section>\n<\/div>\n<p class=\"css-at9mc1 evys1bk0\">Tesla\u2019s vehicle <a target=\"_blank\" class=\"css-yywogo\" href=\"https:\/\/ir.tesla.com\/press-release\/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-second-quarter\" title=\"\" rel=\"noopener noreferrer\">deliveries<\/a> from April through June fell 18 percent from the first three months of the year, an unusual decline for a company that in recent years has posted solid gains from quarter to quarter. (The deliveries were up 26 percent from a year earlier.)<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In China, which accounts for about 40 percent of Tesla\u2019s sales, the Shanghai factory has been plagued by shutdowns related to the pandemic and to shortages of key parts and materials. Tesla has not been able to increase production at new factories in Austin, Texas, and near Berlin as planned.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cIt\u2019s kind of been supply chain hell,\u201d Elon Musk, the Tesla chief executive, said during a conference call on Wednesday.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\" \/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">He told interviewers from a company fan club last month that the Austin and Berlin factories were \u201c<a target=\"_blank\" class=\"css-yywogo\" href=\"https:\/\/www.youtube.com\/watch?v=zY7HhUc42DQ\" title=\"\" rel=\"noopener noreferrer\">money furnaces<\/a>\u201d costing the company billions of dollars while producing few vehicles. Getting them ramped up and restoring the Shanghai factory to normal operations are Tesla\u2019s main priority, he said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\" \/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Tesla said that production in Shanghai rebounded in June and that the Berlin and Austin factories were making progress. \u201cWe are focused on a record-breaking second half of 2022,\u201d Tesla said in its earnings presentation.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The market for electric vehicles is becoming more competitive, and traditional carmakers are eroding Tesla\u2019s lead. Hyundai, Kia and Ford Motor have gained significant market share, while Tesla has lost ground in the United States. Tesla had a 66 percent share of the U.S. electric vehicle market at the end of the second quarter, according to figures compiled by Kelley Blue Book, down from 78 percent in the fourth quarter of 2021.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Tesla\u2019s problems are mostly short term, and profits should improve in months to come, Laura Hoy, an equity analyst at the investment firm Hargreaves Lansdown, said in an email. But she expressed concern about Tesla\u2019s exposure to Bitcoin.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe Bitcoin losses point out an important part of the Tesla investment case \u2014 its eccentric owner,\u201d Ms. Hoy said. \u201cWhile Musk\u2019s impressive innovation has served the company well, his personal flair is starting to raise governance questions.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Musk said Tesla had sold its Bitcoin holdings to increase its cash cushion in light of the problems in Shanghai. \u201cThis should not be taken as some verdict on Bitcoin,\u201d he said Wednesday. Tesla has not sold its holdings of another cryptocurrency, Dogecoin, he said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Tesla had $18.3 billion in cash and cash equivalents during the quarter, according to the company.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Cryptocurrency is a \u201csideshow\u201d and \u201cnot something we think about a lot,\u201d Mr. Musk said.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\" \/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe fundamental good of Tesla, the reason we\u2019re doing this, my primary motivation,\u201d he said, \u201cis to have the day of sustainable energy come sooner.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\" \/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2022\/07\/20\/business\/tesla-earnings-elon-musk.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tesla said Wednesday that profit in the second quarter fell nearly one-third from the first quarter as deliveries slowed because of shutdowns and raw materials shortages at the carmaker\u2019s factory in Shanghai. Profit in the quarter was $2.3 billion, Tesla said, compared with $3.3 billion in the first quarter, which was a record. Sales fell [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[37],"tags":[50,365,3345,6045,2754,9917,364,4214],"class_list":["post-23471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","tag-bitcoin","tag-chain","tag-earnings","tag-hurt","tag-problems","tag-secondquarter","tag-supply","tag-teslas"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/07\/20tesla-earnings-facebookJumbo.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/23471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23471"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/23471\/revisions"}],"predecessor-version":[{"id":23473,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/23471\/revisions\/23473"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/23472"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23471"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}