Tesla's Profit Soars -- and More Strong Growth Is On the Way
Electric-car maker Tesla (NASDAQ: TSLA) reported strong second-quarter results yesterday afternoon, featuring 42% revenue growth. The performance was impressive, considering the tough global supply chain and logistics challenges automotive companies are facing. Of particular note, Tesla's second-quarter profit crushed expectations. Even more, with sales and profits increasing rapidly, the company's war chest of cash grew substantially.
Tesla's strong financials are in stark contrast to the negative free cash flow the company burned through for years after its initial public offering in 2010. But the tides have turned -- and Tesla's second-quarter 2022 report drives this point home.
Helped by the company's 27% year-over-year increase in vehicle deliveries, the automaker's net income nearly doubled, increasing from about $1.1 billion in the year-ago quarter to nearly $2.3 billion in the second quarter of 2022. Tesla's non-GAAP (generally accepted accounting principles) earnings per share jumped 57% year over year to $2.27 -- handily beating the consensus analyst forecast for $1.81.
Source Fool.com
