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Record Quarterly Income For Tesla At $438 Million Against 74% Revenue Growth


04/27/2021


Record Quarterly Income For Tesla At $438 Million Against 74% Revenue Growth
The United States based electric car maker Tesla comfortably beat market expectations for the first quarter – driven by sales of bitcoin and regulatory credits.
 
However the stocks of the company dropped by 3 per cent in the US in after hour trading.
 
The company reported a record quarterly net profit for the first quarter at $438 million on a GAAP basis. The company also reported $518 million in revenue from sales of regulatory credits during the period and $101 million positive impact from sales of bitcoin for the latest completed quarter.
 
The company delivered 184,800 Model 3 and Model Y cars during the first quarter which beat expectations of analysts and setting a record for the company and its s CEO Elon Musk.
 
But for the period ending March, Tesla did not manufacture even one of its higher-end Model S sedans or Model X SUVs. Older Model S sedans and Model X SUVs were delivered in the quarter, totalling at 2,020 units, from its inventor, the company said.
 
The company will finally deliver the new version of the company’s Model S sedans at the beginning of May this year. Musk said in an earnings call. The company will start delivery of its Model X in the third quarter of the year, Musk added. supply chain issues are likely to remain a challenge for Tesla this year, Musk and CFO Zachary Kirkhorn both said.
 
During an earnings call for the fourth quarter of last year – sometime in January of this year, Musk had confirmed that the Model S Plaid was already in production and the company will start delivering the vehicle in February 2021.
 
“There were more challenges than expected,” in producing the refreshed version of these vehicles, he however admitted on Monday. he however did not provide any details.
 
Tesla has set a target of manufacturing 2,000 Model S and X vehicles per week form sometime later this year.
 
For the entire of 2021, Tesla expects to register a growth of 50 per cent on the overall in terms of number of cars delivered which comes out to total deliveries of about 750,000 vehicles for the entire year.
 
However even as the company reported a more than 100 per cent year on year rise in vehicle unit sales, there has been only a 28 per cent increase in its service centers and a 22 per cent rise in the number of mobile service fleet in the last one year. According to analysts, this is one of the major reasons that customers of the company have to face long waiting time for services which is frustrating for them. Service expansion is not keeping pace with the volume of vehicles sold.
 
The company also said that it had managed to tide over the shortage of auto chips during the quarter partly by “pivoting extremely quickly to new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers.” The names of its new suppliers were not disclosed by the company.
 
(Source:www.cnbc.com)