Elon Musk's electric car company, Tesla, posted its seventh-straight profitable quarter Monday, topping expectations, following strong performance in electric cars and SUV sales.
The company made $438 million in the three-month period that ended March 31, as sales more than doubled the same period last year to nearly 185,000 vehicles. All but 2,000 of the sales were lower-priced Model 3 sedans and Model Y SUVs. Tesla said it did not produce any of its higher priced Model S sedans and Model X SUVs as it switched to new versions during the quarter.
The Palo Alto, California, company faces challenges as it tries to reach its second-straight annual profit this year. There is a global shortage of semiconductors that is forcing automakers to idle factories, and Tesla is facing renewed scrutiny of its Autopilot partially automated driving system after two men died in a crash earlier this month near Houston.
The company said it was on track to boost automotive capacity at factories in three countries. A production ramp-up in Shanghai is "progressing well," while a new factory in Germany remains "on track" for production and deliveries in late 2021. A new factory in Texas is "on pace" to also begin production this year, Tesla said.
Excluding stock-based compensation and non-recurring items, Tesla made 93 cents per share. That beat Wall Street estimates of 75 cents per share, according to analysts polled by data provider FactSet. First-quarter revenue of $10.39 billion fell just shy of the $10.48 billion expected by analysts.
Once again, the company needed regulatory credits purchased by other automakers in order to make a profit. Without $518 million in credits for the quarter, Tesla would have lost money. Other automakers buy the credits when they cannot meet emissions and fuel economy standards.
Tesla said adjusted net income, excluding stock-based compensation, passed $1 billion for the first time in the company's history.
