Tesla was more efficient with bitcoin trading than selling cars

Charlie Taylor

Tesla posted record earnings this quarter according to data released on Monday, but not because of its famous electric cars, but because of bitcoin trading and regulatory credits. $ 10.4 billion in revenue and adjusted earnings 93 cents a share exceeded Wall Street expectations. Net income reached $ 438 million, a quarterly record for the company. Furthermore, Tesla said it expects to increase vehicle deliveries by more than 50% this year compared to the 2020 total. That means about 800,000 deliveries this year. Tesla did not exactly earn its record profit from selling cars , However. The company said it sold part of the $ 1.5 billion in bitcoins it bought in February, contributing $ 101 million to the bottom line. That's almost 25% of their total profit after tax. In addition, sales of regulatory credits to other automakers to help them meet their carbon emissions obligations, which generate a 100% profit margin, reached US $ 518 million. This represents more than 97% of Tesla's $ 533 million in pre-tax income. These two hands help to prevent the car manufacturer from going red.

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The shares traded a little lower in the after-hours trading on Monday, falling slightly from the stratospheric price of Tesla's shares. The shares fell about 16% from their peak in early January, but Tesla's market value still stands at $ 700 billion, or more than five times the combined value of Ford and General Motors. Ford sold more than half a million cars in the first quarter in the U.S., more than double the global Tesla total. Tesla's electric car market share has declined in established markets like Western Europe and the U.S., as major automotive companies like Volkswagen, Ford and General Motors have finally taken the electric market seriously. Tesla has recently been setting sales records in China, but local competitors are also emerging there. Regulators in China and the U.S. recently examined the company on issues such as the safety of its driver assistance software, which Tesla calls Full Self-Driving Capability. Tesla ended the quarter with $ 17.1 billion in cash on its balance sheets, therefore, have the cushion to survive even severe blows in your business. And as bears learned the hard way, nothing is impossible when it comes to Tesla's share price. But in today's valuation, the risk of being a Tesla shareholder goes far beyond the fact that CEO Elon Musk remains a skilful cryptocurrency trader.See also: Did Tesla make more money from bitcoin than selling electric cars?

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