Tesla’s Quarterly Profits Look Good, Like Really Good

The power of Tesla holds no bounds, but you already knew that as the company continues to defy expectations with news of their quarterly profits. According to info shared by Tesla just yesterday, profits are up $438 million on revenues of $10.39 billion.

“We’ve seen a real shift in customer perception of electric vehicles, and our demand is the best we’ve ever seen.”
— Elon Musk, CEO of Tesla

Moreover, in the first quarter of 2021, Tesla has recorded 184,800 deliveries of the Model 3 and Model Y. This has set a record for the electric car juggernaut, despite recent news and setbacks caused by Covid.

Tesla’s stock declined by 2% despite this increase in profit. A decline in earnings comes down to the safety of Tesla’s Autopilot driver assistance system. Earlier this month, two men were killed in Texas when a Model S crashed into a tree.

Lars Moravy, Tesla’s chief engineer, has since examined the car with the aid of local and federal law enforcement. Moravy said that the steering wheel was deformed, suggesting someone was sitting in the driver’s seat as the vehicle crashed.

The company also faced backlash after announcing an increase in price to their solar rooftops, angering quite a few customers in the process.

More from Monday’s earnings call

In Monday’s earnings call, CEO Elon Musk said that the company had produced none of its Model S or Model X cars as of late. However, they did deliver over 2,000 older versions from their inventory. New versions of the Model S sedans should be delivered to customers from May, according to Musk.

The topic of supply chains was also discussed, with Musk stating that the past quarter “had some of the most difficult supply chain challenges that we’ve ever experienced.” Quarantine restrictions in China have limited production in eastern factories. Musk expects this to affect the current and next quarter.

Bitcoin was mentioned, with Chief Financial Officer Zach Kirkhorn praising the decision to buy $1.5 billion in cryptocurrency. The electric car company has already sold 10% of that amount. Tesla currently accepts bitcoin as a method of payment in the US.

Overall, Tesla predicts more than 50% in growth this year, which would be some feat given the obstacles. It might not sound as difficult as you might think. After all, Tesla sold nearly half a million vehicles in 2020 alone; a tumultuous time for every major car company in and out of the electric sector.

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