These guys took this company from 3 million in ebitda to 2.5 billion in three years. Can you have better proof than what i'm showing to you right now about how good this company is? My name is tom nash and i quit my corporate job as a senior financial analyst to break down companies for you there's one thing you need to know about me: i don't take from anybody hey. This is tom, and in this video i want to talk to you about the tesla q2 financials. Now i specifically intentionally took an extra two days to analyze these.

I did not want to rush out a video just to get some extra views. I wanted to make sure that i give you some extra value by going deep and deep. I went and i found a few hidden gems that literally nobody else has mentioned, because i guess, when you rush out to make a video real, quick just to get the extra views, you don't have the time to do the deep analysis. But you guys the channel members and the patrons allow me to give up a few views to give you some quality work so check this out before we get started.

I ask one thing and one thing: only: don't click, nothing, don't smash, nothing don't buy. Nothing. Don't subscribe to nothing just give me your attention and i promise to deliver a banger so check this out before we get started. I want to quote to you an analyst who shall remain unnamed for this video, which said i expect tesla profitability to go down.

This quarter because of the decline in regulatory credits now regulator, credits did decline, in fact by 17 to 350 million. But, as you can see right here, the gap profits went up by 704 million, so how'd that work out for you buddy not so. Well. Now, jokes aside, i do want to point out that tesla had a breakthrough quarter.

In fact, this is the first quarter where the company went above 1 billion 1 billion of net income in a single quarter. That's a huge milestone, especially considering a pandemic year, a cheap shortage and a total decline of 17 in regulatory credits. Now those 17 doesn't really tell you the whole story. This regulatory credit quarter, 350 million, was the lowest tesla head since q4 2019.

So it's not only lower. It is the lowest in the past two years that, despite that, the company still managed to increase every parameter considerable as far as ebitda as far as net income. As far as the margin, everything went up like crazy, and none of it has to do with regulatory credits and that's why the decline in regulatory credits did not affect that and i think that's a good time to put this whole regulatory credits. Nonsense argument to bed.

I think these financials actually put an end to this stupid argument. Now, let's move on and at this point i want to go through the financials with you and show you the trend. If you look at three years back and you analyze the financials over the course of the last three years, there's a very clear picture about the trajectory of tesla, which i think a lot of smart analysts and a lot of reporters are missing. I'm not talking about the ones you're doing on purpose, i'm talking about the ones who are trying to be fair and objective, and in this video i'll show you something very interesting that you have never seen before and at this point i want you to take a Look at the trend, because sometimes these numbers don't really mean a lot on a standalone basis.

However, if we pull up these numbers for the past three years, you can clearly see exactly what's going on with tesla and where tesla is headed, and i think these three metrics are really important. The vehicle deliveries, the operating cash flow, free cash flow net income and ebitda, because those are the main metrics of the company, now, first of all, look at vehicle deliveries without even looking at the numbers. What do you see here? You can clearly see a slow incline and then the beginning of a parabolic rise. Now, if you look at the operating cash flow and the free cash flow, you can clearly see the same trend.

For example, the free cash flow is kind of stagnating there and then all of a sudden you have this meteoric rise, the same thing with the operating cash flow look stagnating and then meteor cries. You can clearly see that this is a breakout year for tesla and yet because of mainstream media fud, nobody is really noticing which creates an insane opportunity for us to get more shares at a reasonable price. If you look at net income, which is marking blue, you can see the journey all the way from this negative point to this positive point, it's almost like a flipped upside down chart it's the upside down world from stranger things. The same thing with ebitda ebay is one of the most important metrics for me when i look at a company look where they started, where they're at right now within just three years.

This is insanely impressive, and this is the perfect example when in doubt, just zoom out and now i want you to pay attention to the balance sheet, because a good balance sheet is kind of the report card of the financial management of the company. Right now we have a company with 16 billion in cash 55 billion in total assets. Even if we take out this half a billy of goodwill, it's still pretty much the same numbers total abilities of 28.29, which means almost double assets than liabilities, but wait there's more. Let me show you some cool little nuggets now, this part of the financials nobody looks at it's kind of like the back of your fridge, where food goes to die, but you know me: i dig through it because there's a lot of gold nuggets which can tell You a lot about this company, so let me show you a few little examples now, let's take a look at the adjusted ebitda right here and just forget the numbers i want to show you scale so right now we have 2.5 billion in actual ebitda in q2, 2021., look at what they had at adjusted eb just three years ago, three years ago, three, i'm not saying three billion three million.

This company went from three million of ebitda to 2.5 billion in ebitda in just three years, and a quarter show me another company that can do that, and then you have all these funds and the naysayers pretty much saying that. Well, this is a regulatory credits. Company they're not really profitable, mother lover. These guys took this company from three million in ebitda to 2.5 billion in three years.

Can you have better proof than what i'm showing to you right now about how good this company is and let's talk about automotive revenues and automotive gross profit, because that's where the company is measured, not regulatory credits, automotive? So, as far as automotive revenues, it's 10.2 billion, which is a 100 year-over-year increase now the automotive gross profit, is even better 2.9 billion, which is a 120 increase, not to mention that the automotive gross profit went up from 25.4 to 28 and a half that's insane Again, considering the supply chain issues, the pandemic, the hr issues, the cheap shortage, everything and the companies still managed to improve the automotive gross profit all while increasing operating margin from five and a half percent to 11, literally doubling it. And, of course, we have to talk about ebitda, because what kind of a tom dash video would this be without an ebitda discussion. So maybe that went up to 2.5 billion and in case you're wondering that's 106 percent year over year growth. What about production? What about deliveries? Well, what about them? 201 000 vehicles delivered 206 000 produced 150, more production 121 more deliveries year over year.

This company is literally going to the moon. Now we can talk about the 600 plus free cash flow. This quarter. We can talk about the 16 billion they have in cash we can, but before we do before we dive deep into the financials.

Let me share with you a few hidden gems that nobody is covering, because this is actually important. So the first thing we have to talk about is the energy business. If you look at the financials, you find that the growth of their energy business is insane. In fact, solar panels are up.

215 storage is up 204 percent. These growth numbers literally triple than the automotive growth. This is so good that they've literally stopped selling the storage, the power walls. Unless you buy a solar panel, they literally can't make enough of them to meet the man.

This is the next big wave of tesla and, if you're not smart enough to see it, this is literally hitting you in the face. Look at the energy business. It's growing like crazy and there's also another hidden gem that you absolutely have to see because we actually got confirmation that tesla is going to do over 1 million vehicles this year. Now, if you look at the outlook section of the financials, there's clearly a statement there being made, that tesla is aiming to a 50 annual growth in deliveries and that this year, as well as certain other years, they're going to exceed that now, if you take a Look at 20 20 deliveries.

That's 500 000 vehicles, if you do have 50 growth, you're talking about 750 000 vehicles. What they're saying here is basically that this year, we're going to shoot past 800 000 vehicles and trust me this isn't going to be 20 or 30 000 vehicles. In that case, this statement doesn't even get made the fact that they've made the statement in the outlook section in the summer section of their financials means is going to be a big overshoot, probably a million cars. As i said a year ago, 1 million cars this year.

Finally, i think we have a hard confirmation, basically as much as they're allowed to do, based on sec laws and compliance without over promising things. And, of course, as always, we have an illness statement that becomes controversial and everybody talks about it for a whole week now, during the actual call which i'm assuming most of you did not participate in elon, actually dropped a bombshell, he basically said. Well, i don't think i'm going to be doing these calls anymore, i'm going to let my team do it and, of course, all of the fudsters, the mainstream media and the analyst jumped on his throat basically saying elon doesn't care about tesla blah blah blah? I find it insanely ironic: these are the same people who complained year over year that elon is doing a poor job at these calls, and now they're complaining that he doesn't want to do it anymore and he wants to let somebody else do it instead of them. This is the definition of irony, but beyond that, it's actually a good news kind of thing.

Let me explain trust me for a guy like elon, it's like for pickle rick, to go to therapy in rick and morty. It's boring. He doesn't want to do it. It's a task so for him to get out of it.

It's kind of natural, but elon is also extremely centralistic. He likes to keep things next to his chest. He likes to be the guy who micromanages everything he's a control freak. He has a god complex for him to say i'm giving up a little bit of the control and i'm gon na.

Let my team handle this for now says a lot about what elon thinks about the maturity of this company and this management. It's a great sign, essentially elon is saying this company is ready to spread its wings. It doesn't meet me on every single call. It's good news not to mention that jeff bezos doesn't do these calls even alex carp doesn't do these goals.

You want to talk about warren buffett, doing an annual thing, yeah he's like 147. This is the highlight of his year. These calls that he does once a year the shareholding meetings i mean that's a huge event, but i'm saying in general, big companies don't really have their ceos on their calls if they trust their management. It's a kind of good news thing.

It's going to be interpreted as a bad news thing by mainstream media, just be ready for it now, they're also going to spin the cyber track story. Basically, tesla delaying cyber track for next year. Saying well, look elon is late again, yeah and again a good news thing becoming a bad news thing. Essentially, would you rather have a company that launches a track of the top of a hill without an engine just to make it look good and you all know which company i'm talking about or a company that says we're going to delay it by year, because we're Not willing to put out a product to the market that it's not up to par as far as our standards, and i think i'd rather invest in the latter, not the first but again to each their own.

Now, there's one more thing we absolutely have to talk about, which is what's going to come out of this mainstream media is going to be saying. Well, this is a good quarter for tesla, but i mean we expected more. What more did you expect? I mean at this point it's hard to satisfy the appetite of mainstream media to bash tesla, but since we've all seen it again and again for the past two years, we've now become immune. But again we can still look at the bright side.

At least we finally demolished that they make money from regulatory credits argument now it's dead. However, now we're moving on to the second piece of these arguments. China is heating up more competition in china, more competition to the u.s, more competition in europe. We've been hearing, this competition is coming for the past three four or five years.

I mean this is a narrative that mainstream media has been pushing on us for a while. This is a joke at this point. Look at the competitors and the stuff they're putting on the market as far as price quality and the infrastructure. This is ridiculous, so there you have it.

Ladies and gentlemen, tesla just had a phenomenal breakout quarter, probably the best i've seen in a long long time ignore the fud, ignore the mainstream media and make your own decisions based on math information and actual analytics. Now i'm not a financial advisor, i'm just again in it, and this is just my opinion, which means it might be inaccurate might be wrong, might be the ramblings of a madman. You still have to do your own research, allegedly blah blah mother, effing blah and by the way, a huge shout out to the channel members and the patrons you guys. Allow me to take two days to make this video, instead of rushing out a video.

Thank you. So much we just wrapped up a zoom call with my patrons and members just a few minutes ago we had a blast. If you want to join it's five bucks per month and you're gon na be supporting the channel. I mean what's good, what's bad, it's just a thing to do.

I don't know what i'm talking about i'll see you guys in the next video i'm just around i'll, see you guys next video.