FAST FIVE: Tesla Jumps After Beating On Top And Bottom Line
On the bearish side, questions as usual will swirl about the source of Tesla's profitability: as noted last quarter, virtuallyall of the company's profits came from the sale of zero-emission regulatory credits which Tesla sells to other automakers (i.e., Jeep owner Stellantis).
And yet, Tesla's stock is down 7.2% this year, while the S&P Index it belongs to is up nearly 18%.
This was primarily achieved through substantial growth in vehicle deliveries, as well as growth in other parts of the business.
At the same time, vehicle ASP1 declined by 2% YoY as Model S and Model X deliveries were reduced in Q2 due to the product updates and as lower ASP China-made vehicles became a larger percentage of our mix.
There were a few other headwinds to overcome: supply chain costs as well as lower regulatory credit revenue.