Electric vehicle maker Tesla saw an enormous surge in its first quarter net profit as its revenue soared on the trunk of record deliveries and strong environmental credit sales.
Net profit surged to $438 million, that was a lot more than 27 times the $16m earned in the same period this past year.
It was the seventh straight rewarding quarter for the world’s biggest EV maker.
Revenue during the 90 days to March 31 increased 74 % to $10.3 billion, exceeding analyst expectations of $10.2bn.
This was the second amount of time in the row the business reported $10bn or even more in sales. But it was 3.3 % ($355m) less than the fourth quarter of 2020.
“We achieved our highest ever vehicle production and deliveries ... regardless of challenges, including seasonality, supply chain instability and the transition to the new Model S and Model X,” the business said.
“We have satisfactory liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses."
Following the earnings announcement, Tesla's stocks surged almost 1.2 per cent to 738.2 a share on Monday. The business's shares have climbed a lot more than 362 per cent in the past 12 months.
Sales of regulatory credits were higher than the quarterly profit. It rose to $518m this quarter, up from $354m in the same period this past year.
The California-based company delivered 184,800 cars in the first quarter of this year, beating analysts’ estimates despite a shortage of chips that has hit the automotive industry worldwide.
In the January-March period, it only produced Model 3s and Model Ys, and did not make some of its more costly Model S saloons and Model X SUVs, which are priced from $75,000.
Instead, it sold Model S and Model X vehicles from its existing inventory. These made up just 1 % of first quarter sales.
On an earnings call, the billionaire leader and co-founder of the business Elon Musk said a new version of the Model S will be delivered from next month.
Mr Musk admitted that supply chain issues were likely to remain a challenge for Tesla this season.
Global sales of EVs accelerated this past year, rising 43 % to more than 3.2 million, according to Swedish data company EV-volumes.com.
Tesla sold the most electric cars, delivering practically 500,000 vehicles, accompanied by Volkswagen.
It aims to provide a lot more than 750,000 cars this season.
“We plan to grow our manufacturing capacity as quickly as possible," Tesla said.
"Over a multi-year horizon, we expect to achieve 50 per cent average total annual growth in vehicle deliveries. In a few years, we might grow faster, which we expect to be the case in 2021."
The rate of growth will rely upon “equipment capacity, operational efficiency and capacity and stability of the supply chain”.
Tesla, which joined the S&P 500 index in December, is building the Model Y at its giga-factories in Germany and the united states and aims to begin deliveries from each location this season.
It aims to get started on the deliveries of the Tesla Semi - the freight-hauling semi truck that the company is building with an all-electric powertrain - this season.
“We stick to track to start out production and deliveries from each location [Berlin and Texas] in 2021. Giga-factory Shanghai will continue to expand further over time,” Tesla said.
The company can be focused on reducing the common value of its vehicles to attract budget customers.
In 2017, when Tesla commenced production of the Model 3, its average cost for every single vehicle over the fleet was about $84,000.
It declined almost 55 per cent to $38,000 a vehicle in the first quarter of this year, the company said.