Tesla (TSLA) beat earnings as revenues matched expectations.
Tesla (TSLA) Financial results:
Tesla, Inc. (TSLA) posted earnings in Q1 FY 2021, beating analyst estimates. Adjusted earnings per share (EPS) exceeded anticipated at $0.07. Analyst predictions matched revenue. 1 Tesla’s quarter vehicle deliveries, announced earlier this month, came in at 184,800, slightly above expectations. 2 The company’s stock fell more than 1 percent in after-hours trading. Over the past year, Tesla’s shares yielded a total return of 361.9%, well above the S & P 500’s total return of 45.5%.
TSLA car deliveries
Tesla’s primary business is producing electric vehicles, and to increase sales and income, it needs to continue expanding production. In recent years, the company has made several main acquisitions—including Germany-based Grohmann Engineering GmbH and Perbix Machine Co. Inc.—to increase its manufacturing efficiency and ability. Tesla said it’s currently developing room for its Model Y at Berlin’s Gigafactory and Texas. It expects production from each location to begin in 2021. 4 Rising efficiency and capacity are essential to explain Tesla’s high valuation. Increasing rivalry from rivals including Volkswagen AG (VOW3) and Ford Motor Company (F).
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Tesla achieved its highest vehicle deliveries in Q1 despite facing a range of obstacles, such as seasonality and an unstable supply chain. A global shortage of semiconductors has led many global automakers to idle production. 5 Tesla said it dealt with chip shortage by “pivoting extremely fast to new microcontrollers while designing firmware for new chips manufactured by new suppliers.” 6 It also noticed that its Model 3 was the world’s best-selling luxury sedan, outselling its gas-powered counterparts. Tesla said her vehicle deliveries were the primary driver of significant revenue growth.
Looking ahead, Tesla said it expects vehicle deliveries would rise at an annual rate of 50 percent over a multi-year period, while deliveries are likely to show faster growth for years. In 2021, the automaker plans to hit 50% growth in vehicle deliveries.
TSLA Rentability
Tesla’s first-time non-GAAP net profits reached $1 billion. Overall profitability was improved by volume increase, regulatory credit revenue growth, cost reductions, and bitcoin sales. These positive impacts were offset by lower average selling prices, higher stock-based compensation expenditures, additional supply chain costs, R & D spending, and other products.
Tesla’s next earnings report (for Q2 FY 2021) is expected on July 20, 2021.
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