Tesla’s earnings got off to a strong start thanks to the successful increase in production in 2021. China According to figures disclosed after the market closed on Monday, strong demand for electric vehicles continued in a more crowded market.
However, Wall Street’s attention was focused on the profit margins of its core automotive business. This was lower than expected as the model transition increased supply chain costs and lowered average selling prices. Tesla shares fell more than 2% in aftermarket trading.
At 93 cents per share, up from 23 cents last year, Proforma revenues exceeded Wall Street’s expectations of 79 cents. However, this figure reflects some temporary factors, including a surge in revenue from the sale of regulated credits from $ 354 million in the year-ago quarter to $ 518 million.
Tesla’s recent decision to invest some of its reserve cash in Bitcoin also boosted profits, with cryptocurrency sales adding $ 101 million to earnings.
Tesla’s strong demand for cars was confirmed earlier this month when it reported 184,800 vehicle deliveries in the first quarter. This is about 10 percent better than expected. That was despite the drop in sales of older models S and X by more than 80% prior to the launch of the new version of the car.
Strong deliveries increased Tesla’s revenue from just under $ 6 billion in the previous year to $ 10.39 billion.
However, low sales of the oldest and most profitable models were one of the factors that clouded the profit situation at a very complex moment for the company, and Tesla’s average selling price fell as a result. Said.The· Shortage of chips The face of the entire automotive industry is another concern for investors, and it’s time for Tesla to already face the challenge of adjusting its supply chain to process new models and production facilities. I will.
Other factors complicating the situation include preparations for production at new plants in Berlin and Texas this year, the recent introduction of the Model Y in China, and the planned launch of pickup trucks and semi-trucks. I will.
Most analysts expected Tesla to report a gross margin from the automotive business for the first quarter, which is roughly in line with 24.1% in the fourth quarter of 2020. Excluding the sale of regulated credits, the margin was 22%.
Interest, depreciation and pre-amortization adjusted earnings reached approximately $ 1.84 billion, double the level of the previous year.
Based on formal accounting principles, Tesla reported a net profit of $ 438 million, or 39 cents per share, from $ 16 million in the previous year. This figure was hit after deducting $ 299 million paid to CEO Elon Musk under the controversial stock-based compensation plan adopted in 2018.
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