Tesla profit soars in Q2 2021 results

Tesla says its Q2 this year broke new and notable records, including revenue of US$11.532 billion, producing and delivering more than 200,000 EVs and exceeding US$1b of GAAP net income for the first time.

That resulted in a strong free cash flow of more than US$600 million, but Tesla repaid US$1.6b which decreased cash-on-hand.

“Quarter-end cash and cash equivalents decreased to $16.2B in Q2, driven mainly by net debt and finance lease repayments of $1.6b, partially offset by free cash flow of $619m.”

While it was another strong quarter result for Tesla – its 8^th in a row – the company says although substantial progress has been made on its 4680 battery cell production there remains some work ahead.

Battery cell availability and supply chain constraints mean the Semi electric truck programme is delayed until next year, with the focus on Model Y production first.

It’s Cybertruck is expected to start production later this year, but again the focus is on the Model Y first at its Texas factory.

Automotive revenue produced US$10.21 billion,

Semi-conductor chip shortages seem to be improving, Tesla chief executive Elon Musk says, but he adds it’s hard to predict when that will come right, possibly next year.

Musk says Tesla has substitute chips but that the software and firmware had to be rewritten for them with Tesla able to maintain EV production.

Tesla says its energy storage deployment more than tripled year-on-year in Q2, driven by Megapack projects, while its Powerwall deployments nearly doubled.

Shares in Tesla have risen on the back of the Q2 earnings call.