Tesla's Q1 2021 Earnings Call: Here Are 5 Key Takeaways

The first quarter is typically soft for most automakers. Not Tesla.

Tesla Model Y

EVANNEX EVANNEX

By: EVANNEX

Apr 27, 2021 at 9:46am ET

Add InsideEVs as a preferred source in Google

Comment

This article comes to us courtesy of EVANNEX, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at InsideEVs, nor have we been paid by EVANNEX to publish these articles. We find the company's perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!

Posted on EVANNEX on April 27, 2021 by Matt Pressman

This year the Silicon Valley automaker displayed its production prowess against all odds. The performance of Elon Musk and the Tesla team was on full display yesterday when the company released its first-quarter earnings report and the company's top execs answered questions on an impassioned earnings call.

Above: In their Q1 report, Tesla announced that Model 3 is now the best-selling premium sedan in the world (Image: EVANNEX; Photo by Casey Murphy)

Al Root from Barron's pointed out five key takeaways that explained the drama and excitement that transpired at the beginning of 2021 for Tesla. Here's what he found to be the top highlights.

OVERCOMING ADVERSITY

Even though Tesla posted impressive numbers, Q1 had some significant headwinds. "There is a shortage of semiconductors for automobiles and Covid-19 is still making life difficult for the entire global auto business. Tesla’s problems manifested themselves in higher costs. The EV maker was forced to produce and ship parts in locales that were less than ideal. [CFO] Kirkhorn, however, expressed optimism that profits and margins would improve throughout the year," notes Root.

A CONFIDENT FORECAST

Even with these headwinds, Tesla went on record that growth will continue at an impressive clip. "Tesla management expects to grow volumes at 50% a year on average for the foreseeable future. They also believe they will do better than 50% in 2021. That puts deliveries somewhere above 750,000 units," reports Root. Regardless of the pandemic and supply chain challenges, Tesla looks optimistic as it moves into Q2 and beyond.

PRODUCTION PROWESS

While other automakers and startups begin to dabble in the EV space, Tesla is not standing still. Already, "Tesla is shipping cars from two plants, one in California and the other in Shanghai. Tesla expects both the new Berlin plant and Texas plant to begin producing vehicles in late 2021, with 'volume production' in 2022," according to Musk.

FACING FUD

Some media outlets continue to serve up a diabolical dose of FUD (fear, uncertainty, and doubt) about Tesla. Journalists jumped to incorrect conclusions in a recent accident assuming Autopilot was engaged. It seems it wasn't. Musk said these journalists who spewed FUD while looking for clickbait (instead of facts) should be “ashamed of themselves.”

BITCOIN BONANZA

A bold move, Tesla bet on Bitcoin in Q1. "[CFO] Kirkhorn added he was encouraged by the liquidity offered in the Bitcoin market. Tesla, it appears, had no trouble building a $1.5 billion position in the cryptocurrency. Tesla sold roughly 10% of its position for a 'small gain in our Q1 financials'" reports Root.

Read More Details Related To Tesla's Q1 Earnings:

Tesla Q1 2021 Earnings Report: Profitable For 7th Straight Quarter

Tesla A Year Or More Away From Volume Production Of 4680 Cells

What do you think?

View

Comments

===

Source: Barron's

Source: Evannex

We want your opinion!

What would you like to see on Insideevs.com?

Take our 3 minute survey.

- The InsideEVs team

Share this Story

GO TO COMMENTS

(

)

Got a tip for us? Email: tips@insideevs.com

View all comments ( )

Trending

Kia EV3 Lease Deals Are Here, And It’s Cheaper Than The Chevy Bolt And Nissan Leaf

I Let Android Auto Plan My EV Roadtrip. Here’s How It Worked

This Chevy Bolt Has 470,000 Miles. Here’s How Much A New Battery Was

Here's What It's Like To Take Delivery Of A Rivian R2