Tesla posts record net income of $438 million, revenue surges by 74%

Technology

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CEO of Tesla Motors Elon Musk reacts following the company’s initial public offering at the NASDAQ market in New York June 29, 2010
Brendan McDermid | Reuters

Tesla is slated to report first-quarter earnings after the bell on Monday.

Here’s what analysts are expecting, according to estimates compiled by Refinitiv:

  • Earnings: 79 cents per share expected
  • Revenue: $10.29 billion expected.

Elon Musk’s electric vehicle business reported in the first-quarter vehicle deliveries of 184,800 Model 3 and Model Y cars, beating expectations and setting a record for Tesla. However, the company also said it produced none of its higher-end Model S sedans or Model X SUVs for the period ending March. (It delivered 2,020 older Model S sedans and Model X SUVs from inventory.) Investors will be looking for color on delays to production and sales for the updated versions of the Model S and X.

The company revealed in February it purchased $1.5 billion in bitcoin and would potentially invest in other cryptocurrencies in the future. By April, bitcoin rose to record levels before pulling back.

Tesla said last month that Jerome Guillen, its former president of automotive, would be moving into the role of president of heavy trucking. It’s not clear who — if anyone — has replaced Guillen, but personnel updates could come during the earnings call after the bell.

According to Say.com — a site where retail and institutional investors can submit and vote on questions ahead of Tesla’s earnings calls — shareholders are seeking updates on Tesla’s progress on self-driving technology, rationale for a big price increase on signed Solar Roof contracts, and details about the company’s plans for digital currency.

Tesla’s vehicle batteries and automated driving systems, which are marketed as Autopilot and Full Self-Driving options in the U.S., are weathering regulatory scrutiny after a pair of fatal crashes in April — one in Spring, Texas and another in the Zengcheng district of Guangzhou, China.

Tesla is also facing more competition in the electric vehicle business. Major automakers, including VW, Audi and Ford, are finally selling pure battery electrics.

According to a fresh survey of U.S. vehicle owners from CarGurus, 52% expect to own a battery electric vehicle in the next decade (up from just 34% in 2018). The survey also found that while Tesla continues to be the brand most trust to make EVs, nearly 80% of those interested in owning an electric car are open to buying from any of several brands.

Morgan Stanley head of global autos research, Adam Jonas, wrote in a note to investors last week that with competition increasing, Tesla’s immediate priority should be, “Expanding capacity and industrializing the ‘Tesla hegemony’ before the market gets even more crowded.” Jonas raised his price target for shares of Tesla from $880 to $900 last week ahead of first-quarter earnings.

This is breaking news; please check back for updates.

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