Tesla (TSLA) - Get Tesla Inc. Reportis further tightening its grip on the automotive industry in the United States.
Elon Musk's company is the world's largest automotive group by market capitalization, with a market value of over $896 billion at the time of writing. Ford's is $57.2 billion, while GM's is $52.1 billion.
Tesla is the world's sixth most valuable company, behind Apple (AAPL) - Get Microsoft Corporation Report, Alphabet (GOOGL) - Get Amazon (AMZN) - Get Amazon.com Inc. Report.
Tesla earns more money than its main American competitors Ford (F) - Get Ford Motor Company Report and General Motors (GM) - Get General Motors Company Report.
Tesla has just announced a net profit higher than that of its Michigan competitors for the second quarter in a row.
Tesla reported a net profit of $2.3 billion for the second quarter ended June 30, up 98 percent year on year, beating GM, which reported a net loss of $1.7 billion, down 40.3%. The Austin, Texas company even made three times more money than Ford, which reported a net profit of $667 million, up 19% year on year.
The manufacturer of the electric pickup/truck F-150 Lightning claims that its profits have been lowered by a $2.4 billion decline in the value of its shares in Rivian (RIVN), the youngest competitor. Get the Rivian Automotive Inc. report now.
Rivian stock prices fell by 49% in the second quarter, after Ford declared that it had sold a total of 15 million shares of the company. The Dearborn group still holds 86.95 million Rivian shares, making it one of Amazon's major shareholders along with legendary financier George Soros.
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Tesla Manages its Costs Better
Ford prefers to highlight its $3.7 billion adjusted earnings before interest and taxes (adjusted Ebit).
Tesla maintains its lead when it comes to adjusted EBITDA margins, which are another indicator of profitability. Its adjusted EBITDA margin was roughly 21.4 percent in the second quarter of 2021, compared to 20.8 percent in the second quarter of 2021.
GM's adjusted EBIT margin profit before interest and taxes was 6.6 percent year over year. Ford's adjusted EBIT margin is 8.5 percent. Basically, Tesla is significantly more profitable than Ford and GM.
Tesla makes the difference on costs. The company appears to have greater control over its expenses, which is easy when you spend $0 on marketing, while competitors are enticing customers with advertising touting the features of their latest models.
In the second quarter, Ford's total costs increased by 33.9 percent year over year.
Tesla's performance is even more impressive as the disruptor produces and produces far less cars than its two competitors. In the second quarter, Musk's group produced over 258,000 vehicles and delivered over 254,000 vehicles internationally.
GM delivered 582,401 vehicles to customers in the United States alone, while Ford delivered 483,688 new vehicles.
Tesla reported a net income of $3.31 billion in the first quarter. By comparison, GM made a net profit of $2.93 billion in the same period.
Ford suffered a $3.1 billion net loss.