Tesla Reports Record Quarterly Profit But Shares Drop by 5%

Tesla Reports Record Quarterly Profit But Shares Drop by 5%

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The season of quarterly reports in the USA is carrying on, and today, I'll get you acquainted with the financial performance of Tesla in January-March 2021. Spoiler: there are new records. Want to know more? So do I.

Tesla's profit increased 27 times

On April 26th, after the Monday trading session closed, the known-to-all American electric car-maker Tesla reported the results of Q1, 2021. The report exceeded the expectations of Wall Street analysts.

To get a clearer picture, let's compare the performance in January-March 2021 with the statistics of the same period of 2020. Here's the most interesting part of the recent report:

  • Revenue — $10.39 billion, +74%
  • Net profit — $438 million, +2,638%
  • Operational profit — $594 million, +110%
  • Net return on stock — $0.39, +1,850%
  • Company's money and its equivalents — $17.14 billion, +112%

How did Tesla reach these results?

During the first three months of this year, Elon Musk's company produced 180,338 electric cars. Compared to Q1, 2020, this is 76% more cars. And all this in the total world shortage of chips.

As for sales volumes, in January-March, they increased by 109%. 184,877 electric cars were sold. However, there were 2,030 cars of Model S and X sold, which is 83% fewer than last year. Simultaneously, sales of Model 3 and Y leaped up by 140% to 182,847 cars.

Such impressive quarterly results were reached thanks to another sale of ZEV (Zero-Emission Vehicle) credits that brought the company $518 million, alongside other financial operations.

Tesla shares drop

Such impressive growth not only failed to provoke a sharp increase in the share price of the carmaker but even failed to stop them from falling.

On April 27th, the shares of Tesla (NASDAQ: TSLA) dropped by 4.53% to $704.74. Analysts suppose that this negative reaction was provoked by the fact that the company's management gave no clear forecast for this year. Moreover, regardless of such a noticeable increase in production volumes in Q1, 2021, yearly production plans did not change.

Tech analysis on Tesla shares for April 28th, 2021

A colleague of mine, and R Blog author, and analyst Maksim Artyomov analyzed the current situation in Tesla shares:

"The company published its financial report but this had little influence on the share price. They failed to get the full amount of investors' trust.

On D1, the quotations have been falling for two sessions in a row. On the whole, the price is forming a correction of an uptrend, remaining above the 200-days Moving Average. I suppose that in the nearest future, the price will keep falling to the support level of $668.00, and if this level is broken away, the quotations have all the chances to reach the MA. If the correction lasts, the price might test the border of the ascending channel.

Meanwhile, if in the nearest future Tesla manages to get the trust of investors back, the price might bounce off $668.00 and continue the uptrend. In this case, the aim of the growth will the next resistance level of $900.00."

Tech analysis on Tesla shares for April 28th, 2021

Summing up

The popular US electric car-maker reported the results of Q1, 2021. Quarterly profit increased by 27 times, reaching $438 million.

The main reasons for such growth, experts say, are a sharp increase in sales of Model 3 and Y, as well as sales of ZEV credits and other assets. However, Tesla shares dropped by 4.53% due to the vague forecast for this year.

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