Tesla posts record net income, revenue up 73%, record net profit of $438 million
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