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Dissecting Tesla's Mixed Earnings Announcement

Louis Navellier profile picture
Louis Navellier


  • In 2020, Tesla received $1.58 billion in EV tax credits, but only made $721 million total, so the company actually lost $859 million from making EVs! Clearly, that trend is persisting in the first quarter of 2021.
  • However, Tesla is becoming increasingly efficient, so the focus is now shifting to its new Berlin factory. If Tesla can finally make money on its EV manufacturing without incorporating its EV tax credits, then this will become the big news - that Tesla can potentially compete long term with the efficiency of the legacy auto manufacturers like Ford, GM and VW Group.
  • The latest FOMC statement and Fed Chairman Jerome Powell's press conference just confirmed that we remain in a "Goldilocks" environment of strong economic growth and ultra-low key interest rates.

Investigation Continues Into Tesla Driver"s Death While In Autopilot Mode
Photo by Spencer Platt/Getty Images News via Getty Images

Tesla's (TSLA) first-quarter announcement last Monday was very interesting. Let me start with the good news. The company's revenue rose 74% to $10.39 billion, which was 1% better than the analysts' consensus estimate of $10.29 billion. Tesla also

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Louis Navellier profile picture
Navellier & Associates was founded by Louis Navellier in 1987 and since then has guided thousands of investors by applying our disciplined, quantitative investment process to a broad range of equity products. Every day, investors hire Navellier to manage their assets in a private account, mutual fund, or defensive portfolio. For over 25 years, we’ve been zeroing in on opportunities for long-term growth. We employ a veteran team of investment and client service professionals who deliver exceptional, personal service and industry-leading information to our clients. _________________________________ Important Disclosures that Accompany Navellier & Associates Articles: *Navellier may hold this security in one or more investment strategies offered to its clients. None of the stock information, data, and company information presented herein constitutes a recommendation by Navellier or a solicitation of any offer to buy or sell any securities. Any specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. Individual stocks presented may not be suitable for you. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. One cannot invest directly in an index. Results presented include the reinvestment of all dividends and other earnings. Graphs are for illustrative and discussion purposes only. Although information has been obtained from and is based upon sources Navellier believes to be reliable, we do not guarantee its accuracy and the information may be incomplete or condensed. All opinions and estimates constitute Navellier's judgment as of the date of the report and are subject to change without notice. This report is for informational purposes and is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment making decision. Any decision to purchase securities mentioned in this research must take into account existing public information on such security or any registered prospectus. Past performance is no indication of future results. FEDERAL TAX ADVICE DISCLAIMER: As required by U.S. Treasury Regulations, you are informed that, to the extent this presentation includes any federal tax advice, the presentation is not intended or written by Navellier to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Navellier does not advise on any income tax requirements or issues. Use of any information presented by Navellier is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.

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Comments (6)

Bill Cunningham profile picture
"plus $101 million in short-term gains from selling 10% of its $1.5 billion Bitcoin investment."

That's incorrect; the gain was $128 million.

"During the three months ended March 31, 2021, we realized gains of $128 million through sales of bitcoin and also recorded $27 million of impairment losses."
Roger Knights profile picture
@Bill Cunningham
OK, $101 million in net gain.
Bill Cunningham profile picture
@Roger Knights
It's important to keep realized gains and unrealized losses separate....
Tesla used a record $518 million in credits to garner a net profit. Today, Stellantis announced that it will not need to purchase additional credits from Tesla to stay under the CO2 cap in Europe. What will the reaction be at the next CC if Tesla doesn’t report a profit?
watchingfromabove profile picture

"Tesla used a record $518 million in credits to garner a net profit. Today, Stellantis announced that it will not need to purchase additional credits from Tesla to stay under the CO2 cap in Europe. What will the reaction be at the next CC if Tesla doesn’t report a profit?"

Oooooh! What if it does report a profit?! Bears better be prepared to cover and run!
Bruce Wilds profile picture
Now that Tesla's most recent numbers are out it may be time to revisit what the company is worth. With over 100 different electric cars expected to hit the market by 2025, it is difficult for a realist to envision Tesla being able to remain in the position it is today.

Needless to say, much of the "aura" surrounding Tesla continues to flow from Musk himself. It appears many people view this man as almost god-like, a genius with superman qualities. Still, Tesla has an uphill battle ahead of it. More about the challenges facing Tesla in the article below.

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