Czarina Grace Del Valle Tech 07.26.2021 23:Jul PM EDT

Tesla Stock Price Gets Massive Boost: Q2 Earnings Reach $1.1 Billion After Selling Over 200,000 Cars!

Tesla stocks (TSLA) closed with profits on Monday after the automotive company published its Q2 2021 report and boasted big sales in the EV industry. Potential gains are also seen for interested investors for Q3 2021.

After its already massive earnings in Q1 despite the pandemic and chip shortages, Tesla submitted its Q2 report with market gains, according to Cnet. With its ever-increasing production of electronic vehicles (EV), market demand for the latest models consistently rose. Tesla recorded a net income of $1.1 billion generally accepted accounting principles (GAAP) earned--breaking the $1 billion quarterly record for the first time.

In highlight, Tesla exceeded its previous vehicle production record from 180,338 vehicles in Q1 2021 to 206,421 vehicles in Q2 2021. Tesla also delivered a total of 201,304 cars to their customers.

Tesla Stock Price Gets Massive Boost

At the time of writing, Tesla stocks (TSLA) are valued at $664.3 per share, according to Market Watch. This is an impressive gain that traders can profit from in the next few days. However, for long-term investors, Elon Musk and Tesla are tasked with breaking the next target limit at $700 and $715.

Tesla saw steady gains after its June uptrend broke down, according to FXStreet. Key resistance levels were predicted at $635 and $667. Since Tesla broke the lower-level limit, predictions say that it should have steady gains for the next few days. Nonetheless, starting at $690 to $715, Tesla might experience traffic and resistance. Failure to break this point would leave the market stuck at $700 level in directionless sideways trading.

In conclusion, critical levels for trading with Tesla shares are presently at $591 to $715. Breaking above or below these markers has the potential to accelerate profit or loss for investors.

Tesla Sells Over 200,000 Cars!

Full details for the Tesla Q2 2021 report are posted in PDF format and available to be viewed online.

The report highlights that the automotive industry had:

Operating cash flow (less capex) at $619 million
Net debt and finance lease repayments at $1.6 billion
$1.3 billion GAAP operation income with 11% operating margin
$1.1 billion GAAP net income with $1.6 billion non-GAAP net income
28.4% GAAP automotive gross margin
Successful launch of FSD subscription in July
Delivery start for the new Model S

Tesla Q2 market gains are earned mainly through their automotive success. Tesla, as one of the first automotive companies to specialize in the EV market, is a consumer favorite for new drivers. Tesla also released many different and exciting car models in the last few years.

YouTuber Tesla Economist noted that Tesla markets were gained from the Model Y unit because that car had "significantly higher profits." It is also notable that Tesla planned to expand its markets to European buyers and have been installing equipment, offices, and validating tools in that state.

Tesla's profit gains are good news to short-term investors. However, for long-term investors, it remains a big wait-and-see whether the market is on track for big earnings in Q3.