Tesla posted solid quarterly financial results on Monday reflecting continued increases in sales and production around the world.
The electric carmaker reported 39 cents a share in the first quarter. That’s a significant increase from the 24 cents per share it reported in Q4 2020. A year ago, it only earned 2 cents per share in the first quarter when the coronavirus pandemic hit. sales and the forced shutdown of the factory in Fremont. , Calif.
Its $ 438 million quarterly profit is Tesla’s highest ever.
Earlier this month, Tesla said it delivered a record 184,800 vehicles in the first three months of the year, more than double the figure for the same period in 2020.
Dan Ives, an analyst with Wedbush, wrote in a report to investors: “Tesla continues to see increasingly repressed demand across China and Europe. In the United States, the Biden administration’s push to reduce greenhouse gas emissions and support the sale of electric vehicles will likely help maintain demand for Tesla cars, Mr. Ives added.
Though down from its recent highs, Tesla shares are worth five times more than a year ago. Stocks fell about 2% in long-term trading after the earnings announcement, obviously due to the results being lower than even higher than some analysts’ expectations.
The earnings news comes as Tesla is facing growing questions about the safety of its Autopilot driver assistance system. Two men were killed this month in Texas when the Tesla Model S they were driving crashed into a tree in a residential street and caught fire. Local police said one man was found in the passenger seat and the other in the back seat, with no one at the wheel when the crash occurred.
The National Transportation Safety Board and the National Highway Traffic Safety Administration sent teams to investigate the crash and see if the men rely on Autopilot to drive the car. are not. Representative Kevin Brady, a Republican in Texas, wrote to Elon Musk, Tesla’s chief executive officer, urging him to cooperate with safety regulators.
A week ago, Musk posted an announcement on Twitter saying that the data from the vehicle was “so far”. shows that Autopilot is not enabled.
Tesla has also been under close scrutiny in China, where authorities reviewed reports from consumers of battery fires and sudden acceleration of Tesla cars.
The company currently makes cars in Fremont and Shanghai. In their earnings report, they said they expect to begin production this year at the plants they are building in Austin, Texas and in Germany near Berlin.
Tesla says it expects car deliveries to grow by more than 50% this year from the 500,000 it sold last year. Some analysts expect the year’s figure to reach 850,000 or more.
The Austin plant is expected to produce a futuristic, angled pickup truck, called the Cybertruck, and a battery-powered pickup truck. Tesla Semi is expected to go into production later this year, the company said. It does not specify a specific timetable for Cybertruck production.
Tesla said it generated $ 293 million in cash during the quarter but their cash flow dropped as it used $ 1.2 billion to buy $ 1.5 billion in Bitcoin, a cryptocurrency. It used another $ 1.2 billion to pay off debt and rental payments.