Tesla makes profits for four consecutive quarters: will the curse of electric car not making money break?

category:Finance
 Tesla makes profits for four consecutive quarters: will the curse of electric car not making money break?


For a long time, although Tesla has set off an unprecedented heat in the automobile industry in recent decades, it has not been widely recognized. One of the key reasons is that there is no fundamental breakthrough in the cost of electric vehicles, and the scale has not been released. Generally speaking, electric vehicles are still a money losing business - even Tesla, the industry leader, has not achieved annual profits. This has become the Curse of the electric vehicle industry.

Four consecutive quarters of profits

According to the data, Teslas operating profit in the second quarter was $327 million, with an operating profit margin of 5.4%, and a net profit of $104 million. It was the first time that Tesla achieved four consecutive quarterly profits.

It should be noted that the Shanghai plant and the Chinese market contributed significantly to Teslas second quarter delivery. Affected by the new crown epidemic, the production and delivery of Tesla Fremont factory was suspended for a time. However, with the help of Shanghai Super factory production and Chinas new energy vehicle subsidy policy, according to the data of the passenger Union, Tesla delivered 31000 vehicles in China in the second quarter, accounting for 30% of its global sales.

China is Teslas second largest market after the United States, which can be said to be Teslas second hometown. Tesla said in a press release.

In terms of operating expenses, Tesla said that due to the improvement of its basic operation, profits are also increasing. In particular, the epidemic does not seem to be all bad news for Tesla: after factory shutdown, the cost of shutdown was offset by the measures to reduce expenditure in this quarter.

In the past 12 months, operating margins have been close to 5%. It is expected that the operating profit margin will continue to grow and eventually reach the industry leading level. Tesla said.

Specifically, Tesla further reduced its R & D expenses during the epidemic period, and the R & D expenses decreased month on month for two consecutive quarters. In the second quarter of this year, it was the first time in recent years that Tesla reduced its R & D expenses to less than $300 million. However, Teslas sales and administrative expenses in this quarter did not significantly decrease, compared with the first quarter, there was a small increase.

Expected to achieve annual profit?

At present, the sales volume is still the key factor for the profit of electric vehicle enterprises. Under the background that the battery technology is difficult to be revolutionized in the short term, the main way to reduce the cost of electric vehicles is to dilute the high cost through scale. As a pioneer of electric vehicles, Tesla seems to have explored a path in this respect.

The benefits of significant growth in scale are obvious. On the one hand, it is the dilution of costs, on the other hand, the increase of value-added income. Tesla said that although the average selling price of the vehicles decreased in the second quarter, the improvement in product and manufacturing costs brought about by model y and the model 3 made in China, as well as the increase in after-sales software and mobile connection revenue, had a positive impact on the companys profitability.

However, it remains to be seen whether Teslas sales will remain high. At present, the sales volume of modelx and models have shown some signs of weakness, and whether modely and moldel3 have been sought after by the market still needs time to be tested.

As a new car company, Tesla has been in the forefront of the storm. Under the beautiful coat of intelligent electric vehicles, Tesla, who has entered the ordinary peoples home, has begun to expose more problems and face more challenges. In the first half of this year, Tesla was criticized for its downsizing of autopilot chips in the Chinese market. The more common disputes are frequent price adjustment and the self driving function that is difficult to be fully trusted. It is difficult to determine how many fans Tesla will win in the next few years. In particular, since this year, traditional car companies have also begun to work on electrification and intelligence. Teslas position is not completely unshakable.

In fact, affected by the new crown epidemic, Teslas sales this year are not satisfactory. Combining the data of the first and second quarters, Tesla delivered 17905 vehicles in the first half of this year. Based on the sales target of 500000 vehicles, the annual target completion rate is only 35% -- not much better than most traditional car companies.

However, Tesla is proficient in product and marketing, and it is not difficult to stimulate sales through certain strategies. Since the beginning of this year, Tesla has once again captured many new users by means of price adjustment. In the second half of the year, with the further improvement of localization rate of domestic Model3 and the launch of new vehicles equipped with lithium iron phosphate battery, it is expected that Teslas product price system will be further adjusted. In the long run, Tesla will further increase product R & D and expand production capacity worldwide. Tesla told investors that it will continue to build the capacity of modely in the Berlin and Shanghai Super factories and start delivery from both places as planned in 2021, while the site of the next U.S. super factory has been selected and preparations are in progress. In addition, delivery of teslasemi will begin in 2021. The company also said it would continue to invest heavily in product roadmaps. Obviously, the pioneer of electric vehicles is making a big impact on the next stage. Source: Yang Qian, editor in charge of economic report in the 21st century_ NF4425

However, Tesla is proficient in product and marketing, and it is not difficult to stimulate sales through certain strategies. Since the beginning of this year, Tesla has once again captured many new users by means of price adjustment. In the second half of the year, with the further improvement of localization rate of domestic Model3 and the launch of new vehicles equipped with lithium iron phosphate battery, it is expected that Teslas product price system will be further adjusted.

In the long run, Tesla will further increase product R & D and expand production capacity worldwide. Tesla told investors that it will continue to build the capacity of modely in the Berlin and Shanghai Super factories and start delivery from both places as planned in 2021, while the site of the next U.S. super factory has been selected and preparations are in progress. In addition, delivery of teslasemi will begin in 2021. The company also said it would continue to invest heavily in product roadmaps. Obviously, the pioneer of electric vehicles is making a big impact on the next stage.