Tesla shares declined nearly 3% in after hours trading Wednesday after the company’s second quarter profit and margins missed analyst expectations despite record revenue and vehicle deliveries.
Tesla reported total revenue of $28.24 billion, up 26% from a year earlier and above the company compiled analyst consensus of $27.58 billion. Automotive revenue increased 23% to $20.52 billion, while energy revenue rose 13% to $3.14 billion.
Adjusted earnings came in at $0.33 per share, below the $0.55 consensus estimate. GAAP earnings reached $0.32 per share, compared with expectations of $0.36.
Operating income fell 57% from a year earlier to $398 million, leaving Tesla with an operating margin of 1.4%. Analysts had expected operating income of about $1.5 billion and a margin of 5.4%. Gross margin declined to 16.8%, below the 19.5% consensus estimate.
Tesla generated $4.7 billion in operating cash flow but reported negative free cash flow of $1.09 billion as capital expenditures more than doubled to $5.79 billion. Cash and short term investments declined by $1.2 billion during the quarter to $43.52 billion.
