Tesla Achieves New Record, Worksports Canadian Facility

Worksport WKSP announced today that they are finalizing negotiations for a Canadian manufacturing facility. This, after the company announced recently that it is working towards up-listing on the Nasdaq. Worksport's strategic investment in the new manufacturing infrastructure will support local production of the companies highly anticipated TerraVis systems and the TerraVis COR battery systems.

On Monday after the bell, Tesla Inc TSLA reported record net income during its first quarter, beating expectations handily, buoyed by sales of bitcoin and regulatory credits, but the stock dipped as much as 3% after hours as investors digested the numbers with safety and competitive threats remaining on the horizon.

First-Quarter Figures

Revenue in the first quarter jumped approximately 74% from the same period a year earlier to $10.4 billion, making its way to $438 million in net profit on a GAAP basis, up from $16 million a year ago. Earnings of 93 cents per share exceeded the expected 79 cents per share. But this increased revenue is not only due to direct sales of electric cars. $518 million was brought to the table by sales of regulatory credits that Tesla previously stated it doesn't expect to form a material part of its business. Regulatory credits went up from $354 million during the year-earlier period. $101 million was contributed by sales of bitcoin. Tesla also said it had successfully lowered the cost of making cars, helping offset a decline in the average price of its vehicles.

Deliveries

First-quarter vehicle deliveries of Model 3 and Model Y amounted to 184,877, beating expectations and setting a record for the electric pioneer, doubling the figure from the same period last year. After delivering nearly half a million vehicles throughout last year, Tesla reaffirmed it expects that figure to rise more than 50% this year. However, Tesla did not produce any of its higher-end Model S sedans or Model X SUVs during the quarter as it delivered 2,020 older Model S sedans and Model X SUVs from inventory.

Overcoming Chip Shortages That Plagued The Industry

Like its rivals General Motors Co. GM, Ford Motor Co. F, and Volkswagen AG VWAGY, Tesla was also forced to briefly shut down its Fremont, California factory in February. But it weathered global semiconductor chip shortages by "pivoting quickly to new microcontrollers, while simultaneously developing firmware for new chips" that were made by new suppliers which were not named.

Energy Generation And Storage Business

Revenue of this segment nearly doubled compared to the same period in 2020, when the pandemic had slowed the business into slow motion. But it still declined from $787 million in the last quarter of 2020 to $595 million in the first quarter of 2021. But, Tesla also increased prices for its solar rooftops by 50% during the quarter, and now requires anyone ordering solar photovoltaics, including its solar roof tiles, to also order its home energy storage system, the Powerwall. The change was even applied retroactively to some customers.

When it reported its previous quarter results, Musk said that the company faced some of the most difficult supply chain challenges in its history and that they go beyond computer chips as production in China was held back due to key engineers being unable to travel there due to Covid-19 related restrictions. Both Elon Musk, CEO, and the CFO, Zachary Kirkhorn, expect supply chain issues to remain a challenge this year.

Bitcoin

Back in February, the company revealed it purchased $1.5 billion in bitcoin and would potentially invest in other cryptocurrencies in the future as it is now accepting bitcoin as payment for products sold in the U.S. Tesla's cash flow statement sold $272 million worth of "digital assets," during the quarter.

Challenges

Tesla grew vehicle unit sales by more than 100% YoY but service centers grew by only 28% and its mobile service fleet by only 22%. As a consequence, its customers are facing frustratingly long wait times for repairs as service expansion is not keeping pace with the volume of vehicles sold. Chinese authorities summoned Tesla in February over consumer quality complaints with the government restricting the use of Tesla vehicles by military personnel as well as employees at key state-owned companies due to data-security concerns.

Safety Investigation

Along with making EV history, Tesla is facing challenges on the safety front. Along with more than two dozen investigations of crashes that involve Tesla's vehicles, officials in Texas are investigating the fatal crash of a Model S sedan that happened this month as neither of the victims was found in the driver's seat.

Outlook

Tesla is aiming to produce 2,000 Model S and X vehicles per week later this year. For 2021, it expects more than 50% vehicle delivery growth, which implies minimum deliveries are expected to be about 750,000 vehicles this year. Musk announced that the delayed new version of the Model S sedan will be delivered as of May and Model X deliveries will begin in the third quarter of the year. Tesla's success in popularizing electric vehicles transformed it into the world's most valuable carmaker. But its success also triggered legacy carmakers and startups alike to enter the EV race. The bottom line is that Tesla posted record earnings at the start of a turbulent year in which it faces safety investigations and mounting competition as demand for plug-in cars rises.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.comContributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post Tesla Achieves New Record, Worksports Canadian Facility appeared first on IAM Newswire.