Tesla sees growth on track as demand from China and bitcoin sales boost revenue
- Tesla posted record deliveries in the first quarter despite a global chip shortage that has slammed auto sector rivals. Model Y production in China has spurred demand
- Tesla chief executive Elon Musk said Tesla will have 2 million cars on the road next year, up from more than 1 million cars now
Electric carmaker Tesla Inc marginally beat Wall Street expectations for first-quarter revenue on Monday boosted by a jump in environmental credit sales to other carmakers and robust demand from China.
Sales of regulatory permits were higher than quarterly profit, in line with the trend of several quarters, and net profit was dented by a US$299 million award to chief executive Elon Musk. Tesla’s quarterly performance hit targets qualifying the billionaire entrepreneur for two options payouts worth a combined US$11 billion.
“Higher regulatory credits, lower taxes, and bitcoin sales buoyed financial results. Back these out, and it was a large miss,” Roth Capital Partners analyst Craig Irwin said.
Tesla trimmed its bitcoin position by 10 per cent during the quarter, which contributed to a small gain in first-quarter financials.
“We do believe long term in the value of bitcoin,” said chief financial officer Zachary Kirkhorn. “It is our intent to hold what we have long term and continue to accumulate bitcoin from transactions from our customers as they purchase vehicles.”