Tesla’s Net Income was Up 2,638% in 2021 Q1

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.

Tesla, Inc. (NASDAQ: TSLA) Stock Chart

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Tesla.
  2. This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products. 
  3. Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs.  In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’  Investment is not responsible for any liability.
  4. This report was originally prepared in English, and translated into the other languages with plugin utilizing Google Translation API. We hereby notify that the translations are provided only for the sake of reference, and any opinions or statements in this report should be interpreted in original English. We ask any investors reading this report to refer to the original financial statements issued by the company.
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