Thursday, April 29, 2021 10:43:07 AM
Tesla Earnings Beat On Bitcoin, Regulatory Credit Sales; Musk Blasts 'Extremely Deceptive' Media Reports
esla (TSLA) topped first-quarter earnings estimates late Monday after more than doubling deliveries for the period, while sales of Bitcoin and regulatory credits totaled nearly $800 million. Tesla stock fell Tuesday.
X
Volume 0%
CEO Elon Musk, speaking on an earnings call with analysts, said media reports of a recent fatal accident were "extremely deceptive." Another executive claimed that someone was in the driver seat, in contrast to reporters quoting law enforcement.
Tesla Earnings
Estimates: Analysts polled by Zacks Investment Research expected Tesla earnings per share of 79 cents, a 216% year-over-year surge. Sales were seen jumping 66% to $9.92 billion.
Results: Tesla earnings swelled 304% to 93 cents as revenue leapt 74% to $10.39 billion. The EV giant faced easy comparisons from Q1 2020, when the coronavirus crisis first hit. The Shanghai plant was just ramping up Model 3 production. In Q1 2021, Shanghai began delivering the made-in-China Model Y for the first time.
Revenue from regulatory credits jumped 46% to $518 million. Tesla recorded proceeds from sales of digital assets of $272 million and net digital assets of $1.33 billion on the balance sheet. Tesla bought $1.5 billion in Bitcoin in February.
CFO Zach Kirkhorn explained the Bitcoin investment on the Tesla earnings call with analysts. "Elon and I thought it was a good place to place some of our cash that's not being used currently and get a good return."
Average sales price fell 13% on lower Model S and Model X deliveries due to product updates and as lower-priced China-made vehicles became a larger percentage of the mix. Tesla delivered 184,800 vehicles in Q1, up 109% and beating estimates for 168,000.
At the Fremont, California, plant, Model Y production continued to ramp and is approaching full capacity. In Texas, the Austin factory remains on track to start production and deliveries late this year. In China, the Shanghai factory continues to increase production and recently reached a domestic supply sourcing ratio of over 90%. Tesla said the Gigafactory in Berlin is still on track for production and deliveries in late 2021.
But the German state that's hosting the plant said Tuesday it can't predict how long approvals would take, according to Reuters.
Meanwhile, energy revenue nearly doubled in the first quarter to $595 million, but was down from Q4's $787 million.
Tesla Outlook
Tesla reaffirmed its delivery forecast from January, when it predicted 50% average annual growth in vehicle deliveries, with 2021 expected to be faster than that pace. In 2020, deliveries grew 36% to 499,647.
On the Tesla earnings conference call, CEO Elon Musk said deliveries of the updated Model S "Plaid" would probably start next month, but high-volume production wouldn't start until Q3. Model X production also would ramp up in Q3. He predicted production will top 2,000 Model S/X per week, perhaps above 2,400 depending on global supply chain issues.
On the Q4 2020 earnings call in January, Musk said that Model S deliveries would likely start in February. However, Tesla made no Model S or X vehicles in Q1 as it updates those upscale EVs.
Musk said Monday night that Tesla faced unexpected challenges with the Plaid versions, saying it took a lot of work to make the battery pack safe.
Tesla added that Semi deliveries will begin in 2021 but didn't mention Cybertruck.
Musk said Tesla would likely "achieve volume production" of its planned 4680 battery cells in 12 to 18 months. Those batteries, in pilot production at Fremont, are crucial to Tesla's Cybertruck and Semi production plans.
Musk said he expects "limited" production from the Berlin and Austin plants this year.
Three Titans Near Buys In Key Week For Market Rally
Tesla Disputes Crash Claims
Musk strongly criticized media reports of a Model S crash on April 17, saying they have been "extremely deceptive." Two people died in the crash near Houston when the vehicle slammed into a tree and burst into flames. News reports, citing law enforcement, said neither person appeared to be in the driver seat.
Lars Moravy, VP of Vehicle Engineering, said someone was in the driver seat during the crash, given the damage to the steering area. He also said seatbelts were unbuckled. "FSD could not have been engaged," he stated.
Tesla said it's cooperating with local authorities and the National Highway Traffic Safety Administration (NHTSA). Police have issued a warrant to Tesla to retrieve data from the Model S car. Federal investigators are also probing the accident. It's unclear if Tesla has provided that data.
Musk also reiterated recent Tesla statements that the company is moving toward a camera-only driver-assist system, looking to phase out radar faster than anticipated. Most autonomous vehicle developers use cameras, radar and lidar.
Chip Shortage 'Huge Problem'
The results come as the auto industry has been hobbled by production slowdowns due to a global chip shortage, forcing companies like General Motors (GM), Ford (F), Volkswagen (VWAGY) and Nio (NIO) to slow production. Ford also reports on Wednesday, with Nio due on Thursday.
Tesla said Monday it was "able to navigate through global chip supply shortage issues in part by pivoting extremely quickly to new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers."
Still, CEO Musk said on the earnings call with analysts that the semiconductor shortage is a "huge problem."
Tesla Stock
Stock: Shares fell 4.5% to 704.74 on the stock market today. Tesla stock has a cup-with-handle base with a 780.89 buy point, according to MarketSmith chart analysis.
Tesla stock has been volatile, falling as much as 40% to a low of 539.49 intraday on March 5 from an all time high of 900.40 intraday on Jan. 25. It has since reversed and regained more than 25% of its loss.
While Tesla stock is above its 50-day line, the 50-day is still declining. Also, the midpoint of the handle is only slightly above the midpoint of the relatively deep base.
Tesla's relative strength line is trending higher again after falling earlier this year, but it's not far from consolidation lows. Its RS Rating is 95, while its EPS Rating is 73.
IBD Live: A New Tool For Daily Stock Market Analysis
Tesla Faces New Risks
Tesla, which according to a recent German media report may have to delay opening its plant there until October, is facing headwinds elsewhere too.
A video of a Tesla protester in China, during an auto show blaming faulty brakes for an accident, went viral. Tesla initially responded by saying the crash was due to speeding. Chinese state media called the response arrogant. Government officials have been ratcheting up pressure on Tesla to be more responsive to complaints.
On Monday night's earnings call, Elon Musk made no mention of the Chinese market, despite it being the major growth driver for Tesla over the past year.
Morgan Stanley analyst Adam Jonas said in a note to clients Friday that the company faces "anti-Tesla sentiment in China." He says China realistically accounts for the majority of Tesla profits today.
"However, we have allowed over the next decade for Tesla's position in the domestic Chinese market will be substantially diluted over time through competition and policies to encourage local players," Jonas wrote.
Jonas forecasts that by 2030, Tesla will sell 743,000 units a year in China, accounting for less than 7% of its BEV market. For 2021, the analyst projects Tesla's share of the China BEV market to be about 15%.
However, given recent delivery numbers, Jonas raised his price target for Tesla stock to 900 from 880. He also raised his forecast for fiscal 2021 deliveries by 3% to 809,000 units. But he adds that his forecast is slightly below consensus because he's "allowing for potential supply constraints."
Recent TSLA News
- Apollo Eyes $5 Billion Investment in Intel; TSMC and Samsung Explore UAE Chip Projects, and More • IH Market News • 09/23/2024 10:32:25 AM
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- AIG names new CFO; Progyny Drops 24% After Losing Key 2025 Contract; Exicure Jumps 190% With Nasdaq Extension • IH Market News • 09/19/2024 10:26:48 AM
- Microsoft Boosts Share Buyback, Raises Dividends by 10%, Intel Secures Chip Deal with Amazon • IH Market News • 09/17/2024 10:40:35 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/10/2024 12:02:19 AM
- Dell, Palantir, and Erie Will Be Added to the S&P 500; Boeing Avoids Strike; Apple Event Takes Place Today • IH Market News • 09/09/2024 10:05:35 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Travala Now Available on Skyscanner, Siemens Issues New Digital Bond on Blockchain, Bitcoin Volatility on Thursday • IH Market News • 09/05/2024 06:09:29 PM
- Qualcomm Develops Mixed Reality Glasses; Verizon to Boost Dividend, Eyes Acquisition; Samsonite Plans US Dual Listing • IH Market News • 09/05/2024 10:11:35 AM
- Nvidia Subpoenaed by DOJ, Athira Pharma Shares Plunge 71% After Study Fails, Zscaler Falls 15% Post-Earnings • IH Market News • 09/04/2024 09:50:25 AM
- Intuitive Machines Soars 18% on NASA Contract, Intel Considers Splitting Operations, Dell Reassesses Selling SecureWorks • IH Market News • 08/30/2024 10:00:08 AM
- Big Lots Falls 27%, Considers Bankruptcy; DraftKings Acquires Simplebet, Berkshire Hits $1 Trillion • IH Market News • 08/29/2024 10:06:50 AM
- High Volatility Expected in Nvidia Report, Ambarella Soars 20%, Hertz Strengthens Board, Apple Cuts Jobs • IH Market News • 08/28/2024 09:50:36 AM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- Cruise and Uber Join Forces for Robotaxis, Alibaba Shifts Primary Listing to Hong Kong, Altria Hikes Dividend 4.1% • IH Market News • 08/23/2024 12:20:26 PM
- Schwab and Snowflake Retreat in Premarket, WeRide Postpones IPO, Halliburton Cyberattack, McDonald’s Instagram Hack • IH Market News • 08/22/2024 09:37:42 AM
- Walmart Sells JD.com Stake, Microchip Suffers Cyberattack, Union Pacific Warns of Strike in Canada, and Latest News • IH Market News • 08/21/2024 12:12:11 PM
- Berkshire Reduces Stake in BofA, Hawaiian Airlines Soars 10%, Paramount Receives $4.3B Offer, and More • IH Market News • 08/20/2024 09:56:02 AM
- FuboTV Soars 12% After Venu Sports Block, Goldman Sachs Lowers U.S. Recession Odds, BHP Ends Chile Strike • IH Market News • 08/19/2024 09:28:19 AM
- Deutsche Bank Faces Shareholder Backlash, Bank of America Sponsors 2026 World Cup, Quanterix CEO Buys More Shares • IH Market News • 08/16/2024 10:03:21 AM
- Google Mandated to Modify Play Store, Apple Innovates, Victoria’s Secret Hires CEO, Mars Buys Kellanova • IH Market News • 08/15/2024 10:05:46 AM
- Google Forced to Modify Play Store, Apple Innovates, Victoria’s Secret Hires CEO, Mars Buys Kellanova • IH Market News • 08/15/2024 10:05:46 AM
- UBS Beats Earnings Forecasts, Intel Divests Arm Holdings, Flutter Surges 9% in Premarket Trading, and More • IH Market News • 08/14/2024 09:56:35 AM
- Dell Stock Slide Offers Opportunities; Trump and Musk hold talks on X; GM Restructures China Operations, and More • IH Market News • 08/13/2024 09:43:49 AM
- Starbucks Rises 3%; Disney Unveils New Films and Expansions; Uber CEO Questions Tesla Robotaxi Viability, and More • IH Market News • 08/12/2024 09:46:16 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM