Electric vehicle and clean energy company Tesla reported net income of $ 1.14 billion for the second quarter.
The company’s earnings report on July 26 showed that total revenue was up 98% year over year for the second quarter, up from $ 6 billion in 2020 to $ 11.9 billion this year. Attributing much of its growth to a surge in demand for its electric vehicles, Tesla stated:
“In the second quarter of 2021, we broke new and remarkable records. We have produced and shipped over 200,000 vehicles, achieved an operating margin of 11.0%, and exceeded $ 1 billion in GAAP net income for the first time in our history. “
The company also posted earnings of $ 1.02 per share for the quarter.
The company said total revenue was partially offset by growth in operating costs and a Bitcoin-related impairment loss of $ 23 million.
Because Tesla holds its Bitcoin as an “intangible asset,” accounting rules require the company to report an impairment loss if the asset’s price falls below its cost base. However, Tesla is not required to recognize any impairment loss on the underlying asset until the position is realized through a sale.
The report also shows that Tesla did not buy or sell any digital assets in the second quarter. As such, Tesla’s only crypto purchase remains the $ 1.5 billion BTC purchase in the first quarter, with the company also disbursing $ 272 million in the same quarter.
Tesla’s $ 1.14 billion net income was calculated using generally accepted accounting principles (GAAP) – a collection of generally accepted accounting principles used for financial reporting such as expense reconciliation and revenue recognition.
Non-GAAP numbers, which exclude irregular or non-cash expenses such as depreciation, one-time balance sheet adjustments, and acquisitions, assume the company earned $ 1.6 billion with earnings of $ 1.45 per share.
Related: That’s how much the tweets from Musk and Saylor had an impact on crypto prices in the second quarter
Speaking at the virtual conference “The ₿ Word” on July 22, Tesla CEO Elon Musk smashed rumors that the company might sell its holdings in the near future and also teased that it might accept BTC payments for its electric vehicles again.
Musk also announced for the first time that its aerospace company SpaceX holds BTC, stressing that Tesla and SpaceX have no sales plans:
“We don’t sell Bitcoin, nor do I personally sell anything, or SpaceX sells Bitcoin.”