Tesla Decreased Its Deliveries and Profit but Elon Musk Remain Optimistic

In spite of supply chain woes and labor shortages, electric automaker Tesla achieved better-than-expected Q2 earnings and is pushing forward with its plans for growth.
Written by Allison Stone
Reviewed by Kathleen Flear
Aug 10, 2022
Electric vehicle automaker
Tesla
and its eccentric CEO
Elon Musk
are no strangers to major changes, middle-of-the-night decisions, and shocking revelations. 
In spite of the struggles that Tesla and many other automakers have faced in the past year, the dynamic EV brand is consistent about coming out on top. 
According to
Bloomberg
, Tesla managed better-than-expected earnings for Q2. Dive in with car ownership super app Jerry as we discuss how Tesla plans to keep its current momentum going and turn things around for the second half of the year. 

Supply chain woes persist for Tesla

Last quarter, Tesla’s assembly line at its Shanghai factory was
shut down for weeks
as a result of China’s COVID lockdown policy. While the plant was reopened by mid-April, it was still only managing less than half of its pre-shutdown output. 
The automaker is also putting its
plan to make larger battery cells
on hold for the rest of the year, instead relying on its supply of older-generator cells to fulfill orders. 
Still, Tesla is pushing forward with its plan to increase vehicle deliveries by 50% on average year-over-year for the next several years. As of right now, the automaker is still on track. 
“They are maintaining their 50% growth rate, which is a bit of a surprise. I thought they might back off from that,” said Gene Munster of Loup Ventures to Bloomberg. “They are doing a good job navigating a difficult environment.”

Tesla’s surprising Q2 outcomes

Tesla shares rose 4.6% to $776.48 as of 9:45 a.m. Thursday in New York. The brand’s
Q2 earnings
have exceeded expectations, surpassing $1 billion—but how did it get there?
On a call with analysts reported by Bloomberg, Musk explained Tesla’s Q2 victory. “[I]t’s been kind of supply chain hell for several years,” said Musk, “We have the potential for a record-breaking second half of the year.”
This news came after Tesla sold 75% of its Bitcoin holdings. Originally purchased for $1.5 billion back in February, Tesla sold off $963 million of its Bitcoin assets following concerns about the company’s liquidity. 
Tesla’s adjusted earnings of $2.27 per share exceeded the average of $1.83, but its still a profit decline from the $3.22 per share of the first quarter. It was also the first time in two years that the company failed to increase deliveries from one quarter to the next. 
How Tesla fares in the second half of the year will depend on how quickly it can produce the Model Y SUV and the much-anticipated
Cybertruck
.

Tesla ownership costs are rising

One unfortunate outcome of Tesla’s ongoing supply chain issues is that consumers pay in the end. Finding a way to keep manufacturing costs down and access to raw materials easier and more sustainable will pay off for Tesla and other EV makers. 
Higher prices
mean higher insurance premiums, and many consumers are already stretched thin from inflation. If you’re looking for somewhere to save, try downloading the
Jerry
app. Jerry is a car insurance broker app that helps customers save an average of over $800 per year.
In the time that it takes you to fill out the introductory form, you’ll be connected to instant insurance savings from 55+ major providers and their policies in less than a minute. 
Jerry contacts your insurance company to get the details of your current coverage, so you get all the best prices and coverage with none of the legwork. 
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Jerry automatically shops for your insurance before every renewal. Members save $872/year.
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National General
Allstate
AAA
Aig
Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

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