Tesla ended the second quarter with a significant increase in its profitability, although at the same time it saw its revenues decline significantly.
At the same time, Elon Musk’s behemoth announced that it sold 75% of its bitcoin holdings, adding $963 million in cash to its balance sheet.
In particular, Tesla announced for the second quarter of 2022 net profit of 2.26 billion, or $1.95 per share, compared to 1.14 billion, or $1.02 per share, in the same period last year, while it far exceeded and the estimate of analysts who expected earnings of $1.83 per share.
Instead, the auto tech giant saw its revenue fall to $16.93 billion from $18.76 billion last year, ending its upward streak in recent quarters.
Tesla’s revenue also missed market estimates of 17.1 billion euros, according to Refinitiv research.
It is noted that the company proceeded with successive increases in the prices of its models within 2022 in order to cope with the increased cost of raw materials, such as lithium and aluminum.
For his part, however, CEO Elon Musk said the company will cut its prices again when inflation subsides.
Investors seem to be positively evaluating its performance, however, as its stock is up 2% in online trading after the announcement.
Source: Capital
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