Tesla's revenue and profits beat Wall Street expectations, the second quarter earnings data showed on Wednesday. While revenue hit $16.9 billion against expected $16.88 billion, adjusted earnings per share was $2.27 against a predicted $1.83.
"Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M and ended the quarter with the highest vehicle production month in our history," Tesla said in a statement.
Tesla Shares Rise
Tesla shares, which have seen a torrid battering in the recent months, were up more than 3 percent after the results were announced.
Tesla's sales data had earlier shown that the company made 258,580 vehicles during the second quarter while it delivered 254,695 units. This compared with the 206,421 units the company built in the second quarter o 2021, and the 201,250 units it delivered in the same period.
However, in a surprising move, Elon Musk's flagship company also sold a whopping 75 percent its Bitcoin holdings a year after the tech billionaire vouched of its long-term potential. According to Tesla, the bitcoin sales helped it add $936 million to its balance cash sheet.
'Not a Verdict on Bitcoin'
"As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet," the company said.
Musk explained that Tesla's Bitcoin sell-off was not a 'verdict' on the future of the cryptocurrency.
"The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position ... This should be not taken as some verdict on bitcoin," ," Musk said in an earnings call.'
Tesla's offer to accept Bitcoins for car purchases was a landmark move that helped the whole spectrum of cryptocurrencies. Later, however, Musk moved away from the offer, citing the environmental impact of cryptocurrency mining. Despite the reversal, Musk had pledged that he won't be selling any bitcoin".
Elon Musk sold roughly $4 billion worth of Tesla shares in April. The Tesla and SpaceX CEO sold approximately 4.4 million shares in his electric vehicle company, leading to a 12 percent plunge in the shares, even as he put together efforts to raise funds of his Twitter bid.