Tesla (NASDAQ: TSLA) announced 2021 Q1 earning results on April 26th, 2021. According to the announcement, total revenues, operating income and adjusted EBITDA were up 74%, 110% and 94%, respectively (YoY). In addition, GAAP based net income was up 2,638% (YoY), surprisingly.
EV production and delivery were up 76% and 109% (YoY), and up 0.3% and 2.3% (QoQ), respectively. Operating cash flow and free cash flow both reached record highs (TTM).
Compared to 2020 Q4, the total revenues were down due to seasonality and reduced average selling prices (ASP). However, the operating income and net income were up compared to the quarter. We believe that this is thanks to Tesla’s continuous efforts for cost reduction.
The growth in EV productions and deliveries were due to the reduced ASP caused by the cost reduction. According to the announcement, the cost reduction was at least partially brought by the production at Giga factories. Especially, the lower ASP is at least thanks to the increased delivery of EVs produced at the lower-cost Shanghai Giga factory.
Giga factories in Berlin and Texas are now under construction. Thus, production costs are expected to decline further in the future.
Watanabe & Brothers’ Investment expects Tesla’s continuous growth.
- Watanabe & Brothers’ Investment is holding shares of Tesla.
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