In today's video I look at fundamentals and recent earnings for Tesla (TSLA +0.91%) and share four things investors should know about its earnings report. Below I share a few highlights from the video.
- Tesla reported 97% year-over-year automotive revenue growth for Q2. It is essential to remember that in the same period last year, plant closures caused by the pandemic seriously hurt Tesla and other automotive companies. Regulatory credits were lower than at any time in the past four quarters, but net income was at its highest.
- Tesla provided investors with a multi-year outlook. Over several years Tesla expects to achieve an average annual growth rate of over 50% in vehicle deliveries. It also expects to have sufficient liquidity to fund its product road map and capacity expansions. Finally, it expects the first Model Y vehicles to be built in its new Berlin and Austin plants by 2021.
- Tesla was harmed in Q2 by supply challenges like semiconductor shortages and port congestions. The supply challenges strongly influence its delivery growth rate, but investors could see this as a bullish sign as growth should pick up once the supply challenges are cleared.
*Stock prices used were the premarket prices of July 27, 2021. The video was published on July 27, 2021.
