Tesla’s reported exceptional results for the first quarter after the bell on Monday. The company despite having a sluggish start to the quarter due to concerns over Autopilot Mode has now beat expectations handily. The revenue surged around 74% buoyed by sales of bitcoin and regulatory credits.
Surprisingly, soon after the investors digested profitable revenue, the stocks dipped as much as 3% giving a slight shock to the shareholders. There is a lot to cherish about the company’s net profit. Net profit seized a quarterly record high of $438 million on a GAAP basis. What shook the eyes of many investors was the revenue generated from sales of regulatory credits during the initial quarter of 2021, which was recorded at $518 million.
Tesla’s said it has overcome chip shortages that plagued the auto industry in part by pivoting extremely quickly to new microcontrollers. A bolstering move which was initiated by the simultaneous development of firmware for new chips brought a breakthrough for the company owners and shareholders. It also reiterated Musk’s postulation and frequent claims that cameras, not radar, are the significant pathway ahead towards autonomous vehicles.
Even though the pandemic had its toll on the emerging powerhouse, the revenues for energy generation and storage business nearly doubled for Tesla’s versus the same period in 2020. The staggering aspect of the revenue generation was the energy business which was suffering from the bamboozling effect of the pandemic and slowed down into a crawl.