Thursday, May 6, 2021

Tesla profit hits a quarterly record

Tesla on Monday announced a solid quarterly financial performance reflecting continued growth in worldwide sales and production.

Electric car manufacturer Reported earnings 39 cents per share in the first quarter. This was a significant increase from the reported 24 cents per share for the fourth quarter of 2020. A year ago, it earned just 2 cents per share in the first quarter, as the coronavirus virus injury forced sales and forcing. Shutting down its plant In Fremont, California.

The quarterly profit of $ 438 million was Tesla’s highest ever.

Tesla’s chief executive, Elon Musk, suggested further growth in the coming quarters, saying he believed the company’s small sport utility vehicle Model Y would become one of the world’s top vendors. “There’s a lot to be excited about 2021 and 2022,” he said on a conference call with analysts after the results were announced.

Like other automakers, Tesla has struggled with a chip shortage, which is “one of the toughest supply-chain challenges we’ve experienced,” Mr. Musk said. But he said the company was able to switch to chips that were easier to acquire.

Earlier this month, Tesla said Gave a record 184,800 cars in the first three months Compared to the year, the total is twice that of the comparable period in 2020.

“Tesla continues to see increasing demand throughout China and Europe,” Dan Ives wrote in a report for investors ahead of Monday’s announcement, Dan Ives wrote in a report for investors. In the United States, the Biden administration’s push to reduce greenhouse gas emissions and support electric vehicle sales is likely to help Tesla maintain demand for cars, Mr. Ives said.

Although below recent highs, Tesla shares are worth five times more than a year ago. Extended trading declined more than 2 percent after the stock’s announcement, apparently as the result fell short of higher expectations among some analysts.

The earnings news comes as Tesla faces mounting questions about the safety of its autopilot driver assistance system. Two people were killed in Texas in this month Tesla Model S They crashed into a tree on a residential road And burst into flames. Local police said one person was found in the passenger seat and the other in the back seat, with no one on the steering wheel when the crash occurred.

On Monday’s conference call, Tesla’s chief engineer, Lars Moravi, said, Tesla checked the car with local and federal investigators and found that the steering wheel had malfunctioned, indicating that someone was in the driver’s seat at the time of the crash Was. He said that all seatbelts were non-stop. The autopilot is considered to be closed if the driver’s seatbelt is unbuckled.

Tesla has also come under scrutiny in China, where officials have seen reports from consumers about battery fires and sudden acceleration by Tesla vehicles.

The company currently manufactures cars in Fremont and Shanghai. In its earnings report, it said it expects to start production in factories this year, with it being built near Austin, Texas and Berlin in Germany.

Tesla said it expects deliveries to increase by more than 50 percent this year from the 500,000 vehicles sold last year. Some analysts expect the figure for the year to reach 850,000 or more.

The Austin plant is believed to produce angular, future-looking pickups, known as Siebertruck and battery-powered trucks. The company said that the Tesla Semi is scheduled to go into production later this year. It did not provide any specific timetable for the Cybertruck production.

Tesla said it generated $ 293 million in cash in the quarter but its cash on hand fell because its share was $ 1.2 billion. $ 1.5 billion purchase of bitcoin, Cryptocurrency. It used $ 1.2 billion to repay debt and leases.

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