“Look beyond the record profits and there are some niggling numbers for Tesla to deal with,” comments Danni Hewson, AJ Bell financial analyst. “$518m is the amount of cash generated, not from car sales but from regulatory credits, sold to more polluting car makers. It’s a huge figure, one that’s almost doubled compared to the same quarter last year and one that shouldn’t be relied on long term as other manufacturers make the switch to electric models. 184,800 is the number of cars delivered, an increase of almost 100,000 but the vast majority of sales were in the shape of more affordable models a trend likely to continue. And $110m profit earned from Bitcoin sales, so all told the core business remains loss making.
“But there is one number that will bring investors cheer. 1.05m is the number of cars the business has the capacity to make this year up nearly 50%, in part thanks to new sites coming on-line in Texas and Germany and growth is expected to continue on the same trajectory as more drivers turn on to electric.
“There are hurdles, not least the global shortage of microchips and Elon Musk told investors the last three months have brought the most difficult supply chain problems the company has ever faced. And whilst the market for electric vehicles is growing so is competition for a slice of that lucrative pie. Tesla might have led the race whilst the track was sparsely populated, it will need to find another gear if it’s to keep its position over the distance.”
