Tesla (NASDAQ: TSLA) has reached a new milestone of surpassing $1 billion in non-GAAP net income. This achievement comes against the backdrop of the usually strong seasonal fluctuations of Q1.

Tesla kicked off 2021 with a remarkably solid start, posting strong growth in vehicle production, deliveries, and Q1 earnings. During this period, the company produced 180,338 and delivered a record 184,800 units, despite the numerous headwinds that it encountered. Even when faced with factors of seasonality, unstable supply chains, and the transition to production of the refreshed Model S and Model X, the company achieved strong financial performance.

Q1 net income reached $438 million and non-GAAP net income $1.1 billion (+ 363% year-on-year) for the first time in the company's history. A non-GAAP report can provide a more accurate assessment of a company's financial performance from direct business operations and can help develop a more meaningful picture of its bottom line and value, so it is a useful metric for investors.

Highlights

• Operating cash flow less CAPEX (free cash flow) of $293M in Q1
• Debt and finance lease reduction of $1.2B in Q1
• Net cash outflow of $1.2B related to Bitcoin in Q1
• In total, $ 2.2B decrease in Tesla's cash and cash equivalents in Q1 to $17.1B

Profitability

• $594M GAAP operating income; 5.7% operating margin in Q1
• $438M GAAP net income; $1.1B non-GAAP net income (ex-SBC1) in Q1
• SBC expense of $614M in Q1

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.