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Tesla’s revenue began strong in 2021, thanks to the growth of successful production China and continued strong demand for its electric cars in the more crowded market, according to data released after the market closed on Monday.
But Wall Street’s focus fell on the profit margins of the automotive company’s business, which was below expectations as it recorded high supply chain costs and lower average sales prices due to model transitions. Shares of Tesla were more than 2 percent behind in post-market trading.
At 93 cents a share, up from 23 cents last year, proforma earnings were ahead of the 79 cents Wall Street had expected. But the figure reflected a number of specific factors, including revenue from the sale of regulatory credit, which was $ 518 million, up from $ 354 million a year ago.
Tesla’s decision to invest some of the money it recently took in bitcoin also raised profits, with cryptocurrency sales adding $ 101 million to the bottom line.
Tesla’s strong demand for cars was confirmed earlier this month when it reported 184,800 vehicles delivered in the first quarter, 10% more than expected. There was a more than 80 percent drop in sales of the old S and X models before new versions of the cars were marketed.
Fast shipments accounted for Tesla’s revenue of $ 10.39 billion, down from $ 6 billion the previous year.
The low sales of older, more profitable models, however, were a factor that blurred the profit picture at an unusually difficult time for the company, and Tesla said average sales prices fell as a result. The chip shortage the entire automotive industry has faced another concern for investors, and the time has come for Tesla to meet the challenges of moving its supply chain to new models and production facilities.
Other factors complicating the picture include preparations to start production at new plants in Berlin and Texas this year, the recent introduction of the Model Y in China, and the arrival of semi-trucks.
In the first quarter, most analysts expected Tesla to report a gross profit margin on automotive operations, roughly in line with 24.1 percent in the fourth quarter of 2020. Excluding sales of regulatory credits, the margin is 22 percent.
Adjusted earnings on interest, amortization and amortization reached about $ 1.84 billion, double the level seen and expected in the previous year.
Based on formal accounting principles, Tesla reported a net profit of $ 438 million or 39 cents per share compared to $ 16 million the previous year. The number came as a result of a controversial stock compensation plan approved in 2018 after the removal of $ 299 million paid to chief executive Elon Musk. After that, in a $ 267 million stock, according to the plan Musk issued in the last quarter of 2020.
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