Tesla’s (NASDAQ:TSLA) second-quarter for 2021 saw the electric car maker post $11.958 billion in revenue. The results, which were discussed in the Q2 2021 Update Letter, were released after the closing bell on Monday, July 26.
Tesla’s second-quarter was impressive, with the electric car maker producing a total of 206,421 vehicles, an astounding number considering that Q2 was beset by a number of headwinds. The company also delivered 201,250 vehicles comprised of 199,360 Model 3 and Model Y, as well as 1,890 Model S.
Tesla’s strong Q2 results were due in part to the Model Y’s accelerating ramp in the United States and the all-electric crossover’s momentum in China. Tesla also finally started deliveries of the new Model S Plaid and Model S Long Range, which are high-margin vehicles.
The following are the key points in Tesla’s Q2 2021 Update Letter.
Revenue
Tesla beat expectations in Q2 2021, reporting a revenue of $11.958 billion for the second quarter, representing total revenue growth of 98% year-over-year. In comparison, Wall Street expected Tesla’s Q2 2021 revenue to be at $11.299 billion, with the highest estimates pointing to revenue of $12.827 billion and the lowest estimates pointing to $9.5 billion of revenue.
Earnings
Tesla also beat expectations for earnings, with the company posting earnings per share of $1.45 in the first quarter. Wall Street, on the other hand, expected Tesla to report a gain of $0.98 per share.
Profitability
Tesla posted a GAAP operating income of $1.3 billion in the second quarter, with an 11.0% operating margin in Q2 2021. The company also posted $1.1 billion of GAAP net income and $1.6 billion of non-GAAP net income. GAAP automotive gross margin also stood at an impressive 28.4%. This was the first time that Tesla exceeded $1 billion of GAAP net income in its history.
Cash
Tesla had an operating cash flow less CapEx (free cash flow) of $619 million in the second quarter. The company also saw a decrease of $912 million in its cash and cash equivalents, resulting in its war chest now standing at $16.2 billion as of Q2 2021.
Gigafactories
Tesla has provided some updates on the company’s multiple Gigafactories that are under construction. According to Tesla, commissioning has already started in some areas of Gigafactory Texas. Gigafactory Shanghai has completed its transition as Tesla’s primary vehicle export hub as well. Over in Europe, Tesla is focusing on growing import volumes to the region as Giga Berlin continues its equipment tests.
4680 Cells
Tesla’s Q2 2021 Update has provided a number of key updates about the development of the company’s 4680 cells. For one, the company has successfully validated performance and lifetime of its 4680 cells. Manufacturing validation of the 4680 cell production lines at the Kato Road facility are nearing their end as well. Last but not least, internal crash tests of 4680 structural battery packs have so far been successful.
Tesla Energy
Tesla Energy hit its stride in the second quarter, with battery storage deployments tripling in Q2 2021. This increase was primarily due to several Megapack projects. The company noted, however, that while Powerwall demand is exceptional, supply chain challenges have kept the home battery system backlogged. As for the Solar Roof, deployments reached 85 MW in the second quarter, more than tripling year-over-year.
Tesla’s Q2 2021 Update Letter could be accessed below.
Tesla q2 2021 Results by Simon Alvarez on Scribd
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Investor's Corner
Tesla Board member and Airbnb co-founder loads up on TSLA ahead of robotaxi launch
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member’s purchase.

Tesla Board member and Airbnb Co-Founder Joe Gebbia has loaded up on TSLA stock (NASDAQ:TSLA). The Board member’s purchase comes just over a month before Tesla is expected to launch an initial robotaxi service in Austin, Texas.
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member in a post on social media.
The TSLA Purchase
As could be seen in a Form 4 submitted to the United States Securities and Exchange Commission (SEC) on Monday, Gebbia purchased about $1.02 million worth of TSLA stock. This was comprised of 4,000 TSLA shares at an average price of $256.308 per share.
Interestingly enough, Gebbia’s purchase represents the first time an insider has purchased TSLA stock in about five years. CEO Elon Musk, in response to a post on social media platform X about the Tesla Board member’s TSLA purchase, gave a nod of appreciation for Gebbia. “Joe rocks,” Musk wrote in his post on X.
Gebbia has served on Tesla’s Board as an independent director since 2022, and he is also a known friend of Elon Musk. He even joined the Trump Administration’s Department of Government Efficiency (DOGE) to help the government optimize its processes.

Just a Few Weeks Before Robotaxi
The timing of Gebbia’s TSLA stock purchase is quite interesting as the company is expected to launch a dedicated roboatxi service this June in Austin. A recent report from Insider, citing sources reportedly familiar with the matter, claimed that Tesla currently has 300 test operators driving robotaxis around Austin city streets. The publication’s sources also noted that Tesla has an internal deadline of June 1 for the robotaxi service’s rollout, but even a launch near the end of the month would be impressive.
During the Q1 2025 earnings call, Elon Musk explained that the robotaxi service that would be launched in June will feature autonomous rides in Model Y units. He also noted that the robotaxi service would see an expansion to other cities by the end of 2025. “The Teslas that will be fully autonomous in June in Austin are probably Model Ys. So, that is currently on track to be able to do paid rides fully autonomously in Austin in June and then to be in many other cities in the US by the end of this year,” Musk stated.
Investor's Corner
Tesla hints at ‘Model 2’ & next-gen EV designs
Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.
Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.
“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.
“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”
The Model 3 is a hell of a deal, ngl. With the federal tax credit, it'd be silly to get a comparably priced combustion-powered car.
Now for the big question. Is the Model 3 currently the best-looking Tesla? https://t.co/5E37J9OKhU— TESLARATI (@Teslarati) April 24, 2025
In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”
Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.
It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.
The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.
Elon Musk
Tesla regains Piper Sandler’s confidence with Robotaxi plans & Q1 Results
Piper Sandler says Tesla delivered the best-case scenario for bulls. $TSLA has catalysts ahead to silence the bears.

Tesla gained Piper Sandler analyst Alexander Potter’s confidence following its Q1 2025 earnings call. Piper Sandler reaffirmed its Overweight rating and $400 TSLA price target, signaling optimism for the company’s robotaxi and affordable vehicle launches expected this year. The firm’s stance reflects Tesla’s resilience amid market challenges.
Despite expectations of weak Q1 financials, Tesla’s stock edged up in after-hours trading, defying skepticism. Piper Sandler’s Alexander Potter noted that the results met the hopes of Tesla supporters, particularly as the company held firm on its timelines. Potter emphasized that anticipation for robotaxi details and new vehicle launches should keep critics at bay, supporting the $400 target.
“In our preview last week, we predicted that (at best) Q1 would be a non-event. With the stock trading up slightly in the after-hours session, it appears our best-case scenario has materialized. Considering generally weak Q1 financials, we think this is the best result that TSLA bulls could’ve reasonably hoped for.
“In our view, the most important Q1 takeaway is this: Tesla didn’t hedge expectations re: launching Robotaxis or lower-priced vehicles in 1H25. With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead. In our view, this alone should be enough to keep the bears at bay, at least until we have a better idea re: the details of Tesla’s new products, as well as the scale/scope of the Robotaxi launch,” wrote Potter.
Wedbush Securities’ Dan Ives, a longtime TSLA bull, echoed Potter’s optimism for Tesla. Ives raised his price target for Tesla stock from $315 to $350 with a BUY rating. His Tesla upgrade came after Elon Musk’s announcement during the Q1 earnings call that he would reduce his involvement with DOGE, signaling a sharper focus on Tesla.
Tesla’s steady Q1 performance and unwavering commitment to its 2025 roadmap, including the Robotaxi launch and lower-priced models, bolster investor confidence. Piper Sandler’s analysis underscores Tesla’s ability to navigate a competitive electric vehicle market while advancing its technological edge. The upcoming Robotaxi launch and affordable vehicle introductions are pivotal, with analysts expecting these initiatives to drive stock value through 2025.
As Tesla prepares for these milestones, its stock movement reflects market trust in Musk’s vision. With Piper Sandler and Wedbush reaffirming bullish outlooks, Tesla’s strategic moves will remain under close scrutiny, positioning the company to capitalize on its innovation pipeline in a dynamic industry landscape.
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