Tesla posts record net income, revenue up 73%, record net profit of $438 million
Tesla has had a stellar first quarter of 2021, beating earnings expectations from Wall Street analysts. The automaker posted US$10.389 billion in revenue, up 73 percent YoY from $5.985 billion in Q1 2020, and just behind the figure of $10.744 billion for Q4 2020 as well as non-GAAP earnings per share of $0.93.
Tesla’s Model X and Model S are set for a refresh in 2021. Image: Tesla Motors
Tesla has had a stellar first quarter of 2021, beating earnings expectations from Wall Street analysts. The automaker posted US$10.389 billion in revenue, up 73 percent YoY from $5.985 billion in Q1 2020, and just behind the figure of $10.744 billion for Q4 2020, and the company also announced non-GAAP earnings per share of $0.93.
GAAP earnings are used to standardise financial reporting of large, publicly-traded companies, and non-GAAP earnings constitute items like large asset write-downs, one-time transactions or company restructuring costs.
Tesla reported record net profit of $438 million for the seasonally slow quarter (GAAP), as well as sales of regulatory credits to the tune of $518 million. Operating income came in at $594 million, resulting in a 5.7% net operating profit.
According to the company, quarter-end cash and cash equivalents decreased to $17.1B—still a huge pile of cash—in Q1, “driven mainly by a net cash outflow of $1.2B in cryptocurrency (Bitcoin) purchases, net debt and finance lease repayments of $1.2B, partially offset by free cash flow of $293M.”
Tesla has been growing its vehicle sales to the tune of 100% YoY, and according to Elon Musk, the Model Y SUV is likely to become the best selling vehicle on the planet within the next few years. Tesla investor David Lee has some interesting figures should the automaker manage to achieve 500,000 deliveries a quarter, demonstrating that this could potentially net Tesla $22.5 billion in revenue, and $5.6 billion in gross profit.
Tesla will obviously have a lot of expenses over the next few years; the completion of Gigafactories in Berlin and Texas, scaling up production of its new 4680 cells to deal with the incredible demand for batteries and rolling out more Supercharging sites, service and sales centers and mobile technicians to name a few. We have full confidence in Tesla; partly due to its year over year profit and increasing sales volume, but also due to the untapped potential of its energy business.
Tesla has the ability to make Tesla Energy almost as big as its automotive business in our view. The company deployed 92 MW of solar in Q1, up 163% from 35 MW in Q1 2020. It also deployed 445 mWh of energy storage, up 71% from 260 mWh in Q1 2020.
Tesla’s financial summary for Q1 2021. Source: Tesla
Tesla’s operational summary for Q1 2021.
Source: Tesla Motors
Tesla posts record Q1 production and delivery results, almost exclusively from Model 3 and Model Y
In the first quarter of 2021, Tesla produced 180,338 vehicles and delivered 184,800 vehicles. That’s a record for what is traditionally a quiet quarter, and represents a 76 percent increase from 102,672 vehicles, and a nine percent increase from 88,400 vehicles produced and delivered respectively in the first quarter of 2020.
In the first quarter of 2021, Tesla produced 180,338 vehicles and delivered 184,800 vehicles. That’s a record for what is traditionally a quiet quarter, and represents a 76 percent increase from 102,672 vehicles, and a nine percent increase from 88,400 vehicles produced and delivered respectively in the first quarter of 2020.
These results also eclipsed the fourth quarter of 2020—traditionally a strong quarter—where Tesla produced 179,757 vehicles and delivered 180,570 vehicles.
Looking at the numbers above, the Model S and X contributed just over one percent of deliveries to Tesla’s Q1 2021 results, due to the fact that production ceased late last year as production lines are set up and retooled for the refreshed Model S and Model X Long Range, Plaid and Plaid+ due to launch this year. in the fourth quarter of 2020, Model S and Model X sales comprised approximately 10% of total vehicles produced and delivered. Years ago, critics mocked Elon Musk when he stated that Model S and Model X sales are “not all that important” in the long term.
Tesla’s Semi, likely to be introduced in 2022. Image: Tesla Motors
Despite strong forward demand for the revised Model S and Model X ranges, it’s now clear that Musk’s plan is coming to fruition; the more affordable Tesla Models are indeed contributing to the bulk of production and delivery numbers. China’s Gigafactory has been ramping up production over the last few months, and strong demand for Model Y in both China and in North America has clearly been a winner for Tesla.
With the installation of the Gigapress die-casting machines in Tesla’s factories, the company is able to realise even greater efficiencies in production, and maintain production to meet demand. 2021 will be an interesting year for Tesla; there’s the refresh of the Model S and X which will increase premium category sales and boost profitability, Both the Texas and Berlin Gigafactories are set to come online, Shanghai is expanding, and there is talk internally at Tesla that one million vehicles produced and delivered might be achievable.
Source: Tesla Motors
