Tesla beat analysts’ numbers when it gave earnings this week, reporting a profit of $1.1 billion and setting a record for deliveries in the quarter. But one analyst has said that the EV company might have much more room to grow.
Deutsche Bank Auto Tech Analyst Emmanuel Rosner has said that Tesla was relentless in its drive to lower the costs of its products and to give cutting-edge battery tech.
“We truly believe this is about their lower cost. This is about their superior battery tech, and it seems like there is some more to come next year,” Rosner said this week.
Tesla’s adjusted EPS, $1.45, more than tripled in the second quarters versus the same time frame last year and easily went higher than analysts’ expectations of $0.97. Overall revenue was reported to be $11.96 billion, breaking expectations of $11.30 billion too.
Tesla has gone through production woes as of late, somewhat because of the semiconductor shortages going on globally and issues with battery production. However, new focus given to helping productive capabilities might help increase the EV maker’s production in the long term, Rosner said.
“Tesla has done a wonderful job in Q2 in a very, very demanding supply chain climate to actually create as much as they possibly can, almost maxing out capacity utilization,” Rosner stated. “This has probably been among the hardest quarters, from a supply chain viewpoint, especially when it comes to semiconductors.”
Rosner also said that the CEO Elon Musk reported during the earnings call this week that Tesla is “certainly preparing for a possible doubling of production in 2022.”
Curiously, Musk also announced that he might skip future earnings calls in the future, leading to questions about his future involvement with the company.
“He framed his decision to no longer to be on earnings call as being about an efficient use of time,” Rosner said. “I do not believe this is something which is around the corner… Long-term, yeah absolutely, the fact that the company might do ok without his day-to-day work would actually be a good thing for the company.”
Author: Blake Ambrose