Investors Sell on the News: Tesla’s Stock Lower After First $1 Billion In Quarterly Profit

Tesla managed record profits in the second quarter of 2021, beating analyst predictions and brushing away the semiconductor shortage.

The company reported $1.14 billion in second-quarter profits, up nearly 1000% compared to the $104 million in profits in the second quarter of 2020.

The electric vehicle manufacturer reported $11.96 billion in revenue, nearly double of $6.04 billion in Q2 2020. The company recorded a profit for the eighth quarter in a row.

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According to the earnings report, the growth is mainly based on volume growth and cost reductions. These were partially offset by rising expenses and supply-chain costs.

The company also revealed how it was able to deal with the crippling semiconductor shortage. Tesla boasted that it used its “unparalleled ability to react quickly and mitigate disruptions.”

Simply put, it switched from semiconductors to microcontrollers. That allowed Tesla to meet demand, even as other automakers were slowing or shutting down production.

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The company lost money on its Bitcoin investment. It reported $23 million in Bitcoin-related impairments, as the prices of crypto collapsed. The company still holds $1.3 billion in Bitcoin.

The stock dropped 1.27% or $8.32 a share to $649.30 in early trading Tuesday after gaining more than 2% in after hours trading on Monday.

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