Tesla Reports Record Income as Sales Surge 74%, Profits Over $100 Million From Bitcoin (BTC) Sales

By Mariliana Fotopoulou Tuesday, April 27, 2021

Tesla, the biggest electric vehicle (EV) company in the world, reported stronger-than-expected profit and business sales numbers for Q1 on the back of the robust demand for its EV products, business sales of regulatory credits, and Bitcoin (BTC) investment.

Bag with the word 'profitabiliy' next to an upward trending line.

Record Quarterly Income and Deliveries

Tesla reported earnings of $0.93 per share to easily surpass the $0.79 per share expected from the surveyed market analysts. Business sales came in at $10.39 billion to mark a 74% year-over-year (YOY) growth. Market analysts were calling for business revenues of $10.29 billion.

Profits were boosted by $518 million in business revenue from sales of regulatory credits, while the company also benefited $101 million from sales of Bitcoin.

“In Q1, we achieved our highest ever vehicle production and deliveries. This was in spite of multiple challenges, including seasonality, supply chain instability and the transition to the new Model S and Model X. Our GAAP net income reached $438M, and our non-GAAP net income surpassed $1B for the first time in our history,” the EV company said in a statement.

The quarterly deliveries, the closely-watched metric for Tesla, for Model 3 and Model Y came in at 184,800 to top the market estimates for this business category. This number also represents a new quarterly record for the EV company.

However, the company reported it didn’t produce more expensive Model S sedans or Model X SUVs in Q1, but it managed to sell 2,020 of the former from inventory. During the earnings call, CEO Elon Musk said that the new Model S would be delivered to the first customers in May 2021, while deliveries of Model X will start in Q3 of this year.

The goal is to produce 2,000 Model S and X vehicles per week later this year, the company noted. Overall, Tesla expects to record a 50% growth in EV deliveries, which translates into the full-year EV deliveries of 750,000. Model 3 and Model Y are expected to lead the sales in the three remaining quarters of this year.

“First deliveries of the new Model S should start very shortly, Model Y production rate in Shanghai continues to improve quickly and two new factories Berlin and Texas are making progress. There is a lot to be excited about in 2021,” the company added.

Tesla noted that it managed to cut production costs significantly as the average cost fell to below $38,000 per vehicle in Q1. The company reiterated that Model 3 production cost stood at about $84,000 in 2017.

Robust Model 3 sales show that an EV unit can outsell fuel-powered cars, Tesla says. Model 3 is the best-selling premium sedan in the world, as it manages to outsell “long-time industry leaders such as the 3 Series and E- Class.”

The expectations for Model Y are also extremely high as Tesla expects it to become the best-selling vehicle in the world in all categories.

Summary

Tesla reported extremely strong business sales growth, profit, and deliveries for Q1 as the EV company benefited from sales of regulatory credits and Bitcoins. The EV business said it aims to ramp up Model S production and deliveries in 2021, while Model 3 remains the best-selling premium sedan in the world.

About the Author


Headshot of Mariliana Fotopoulou

Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.

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