Tesla TSLA Q1 2021 Earnings Preview

Tesla TSLA Q1 2021 Earnings Preview

Tesla (NASDAQ: TSLA) will post its financial results for the first quarter of 2021 after the market closes on Monday, April 26, 2021, which will provide many answers about the company's current position as well as its plans for the rest of the year. Tesla's record-high deliveries and the sales of regulatory credits in the first quarter should boost the company's revenue.

Tesla shares rose on Monday ahead of the Q1 2021 Earnings Call, which is expected to see earnings rise to over $10 billion. Tesla is forecast to post a first-quarter bottom line of 79 cents per share, a two-and-a-half-fold increase from the same period last year, on a 72% surge in revenues to $10.3 billion when it reports after the close of trading today, according to The Street.

In Q1, Tesla achieved impressive success, delivering 184,800 vehicles and producing 180,338 Model 3 and Model Y. China sales accounted for about 37.5% of this figure, registering 69,280 units in the world's largest auto market in Q1.

The Street indicates that the manufacturer is experiencing gross margin pressure, which is partly related to the costs associated with meeting targets and delivery times in the face of a global semiconductor shortage. In their opinion, this could hit the profit in Q1, but it seems that Tesla is less affected by the supply chain. The company has been striving hard to create a system in which most of the components for car production will be produced in-house, and this is paying off.

Another positive factor is the sale of regulatory credits, totaling $401 million. This will certainly give an additional positive impetus to its bottom line.

Updates on the expansion of production facilities at Giga Berlin and Giga Austin, which are expected to be operational at the end of this year, will also be important in the short term. With the start of production in all factories, Tesla will make the final transition to mass production and is expected to aim to produce 1 million vehicles in 2021. According to data from Tesla's suppliers, the company aims to produce one million vehicles in 2021. Also, during the Q4 2020 Earnings Call, Tesla CEO Elon Musk and CFO of the company Zachary Kirkhorn said that growth in 2021 could exceed 50% from the year before.

© 2021, Eva Fox. All rights reserved.

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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.

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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