Tesla reports record quarterly profit, but shares fell 5% | R Blog RU

The season of quarterly reports in the US continues, and today we will talk about Tesla’s financial results for January-March 2021. Spoiler alert: We’re talking about record numbers. Want to know the details? We, too!

Tesla’s profit grows 27 times

On April 26, after the end of the trading session on Monday, the well-known American electric car manufacturer Tesla reported for the first quarter of 2021. The information provided exceeded the expectations of Wall Street analysts.

For a better understanding, we will compare the financial data for January-March 2021 with the statistics for the same months of the last year. Here are the highlights from Tesla’s Q1 2021 report:

  • Revenue – $ 10.39 billion, + 74%.
  • Net profit – $ 438 million, + 2638%.
  • Operating profit – $ 594 million, + 110%.
  • Net income per share – $ 0.39, + 1850%.
  • Cash and cash equivalents – $ 17.14 billion, + 112%.

How did Tesla get there?

In the first three months of this year, Elon Musk’s company produced 180,338 electric vehicles. Compared to the results of the first quarter of 2020, this figure is 76% higher. And this is in the face of a colossal shortage of chips in the global automotive industry.

As for the sales volumes, they increased by 109% in January-March. During these months, 184,877 electric cars were sold. At the same time, Model S and X were sold 2030 units, which is 83% less than last year’s statistics. Sales of Model 3 and Y, on the other hand, jumped 140% to 182,847 EVs.

Achievement of record quarterly profit was helped by another sale of ZEV-credits (Zero-Emission Vehicle credits), which brought in $ 518 million, as well as other financial bets of the company.

Tesla shares are losing value

Such an impressive financial report for the first quarter of this year not only did not provoke a sharp rise in the price of the automaker’s securities, but also could not prevent a fall in its quotations.

On April 27, Tesla (NASDAQ: TSLA) shares fell 4.53% to $ 704.74. Analysts suggest that the backlash from investors is due to the fact that the company’s management did not give an accurate and understandable forecast for this year. In addition, despite such a significant jump in production volumes in Q1 2021, production plans for the year remained unchanged.

Technical analysis of Tesla shares on 04/28/2021

My colleague, R Blog author and RoboForex analyst, Maxim Artyomov, analyzed the current state of Tesla shares:

“Tesla has released financial statements, but this has not had a strong impact on the share price. Investor confidence has not been fully obtained.

On the daily chart, quotes continue to decline for two sessions in a row. In the big picture, the price is forming a correction against the background of an uptrend and is still above the 200-day moving average. Further, we can assume that in the near future the price will continue to decline to the area of ​​the support level – $ 668.00, and in case of a breakdown of support, the quotes will have every chance of reaching the Moving Average. If a trading situation develops with a prolonged correction, the price may test the lower border of the ascending channel.

At the same time, if in the near future Tesla manages to regain investor confidence, then a possible option in the form of a rebound from the support level of $ 668.00 and the continuation of the upward trend. In this case, the next resistance level at $ 900.00 will be the target for the growth of quotations. “

Summing up the result

The popular American electric car maker reported its successes in the first three months of this year. The size of the quarterly profit increased 27 times and reached a record high of $ 438 million.

Experts say the main reasons for this growth are the jump in sales of Model 3 and Y, as well as deals on the sale of emission allowances and other assets. At the same time, Tesla shares became cheaper by 4.53% – all due to an indistinct forecast for the year.

What else to read about Tesla on the R Blog?

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