Tesla zoomed past analyst expectations in its quarterly results thanks to record-breaking car sales and Bitcoin trading. The company posted its earnings last night that noted $10.4 billion in revenue for Q1 2020 — matching the analyst expectations.
Despite the global chip shortage, Tesla delivered a record-breaking 184,877 cars in the quarter, beating the mark of180,570set in Q4 2020. This number was also much higherthan the analyst expectation of177,822 vehicle deliveries.
The firm also edged past Wall Street predictions of earnings per share (EPS) of $0.86 by registering $0.93 EPS in its balance sheet. While the company’s share prices were up by 1.21% at the close, it dipped 2% in after-hours trading.
Elon Musk and Tesla’s faith in digital assets also paid off. In January, the company announced thatit had invested $1.5 billion in Bitcoin. The firm’s chief financial officer, Zachary Kirkhorn, said Bitcoin trading helped it earn $272 million — with $101 million in “positive impact”.
Musk tweeted that this trade accounted for 10% of the carmaker’s digital asset holdings. But he hasn’t sold any from his personal wallet.
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No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.
— Elon Musk (@elonmusk)April 26, 2021
In May, Tesla announced that folks in the UScan buy its vehicles with Bitcoins.
The company said it expects vehicle delivery to grow by 50% in 2021. In terms of product, it aims to expand the production of Model Y in its Berlin and Texas gigafactories. Plus, it wants to start deliveries ofits Semi-Cargo trucksthis year.
Story byIvan Mehta
Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.“Ivan covers Big Tech, India, policy, AI, security, platforms, and apps for TNW. That’s one heck of a mixed bag. He likes to say “Bleh.”
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