Tesla reported their Q1 results yesterday and continued to show impressive growth in several metrics. The company more than doubled the number of cars sold in Q1 (YoY) with 185,000 cars delivered between January and March this year.
Revenue also increased by 74% to $10.4 billion, up from $6 billion in the same quarter last year. Profits surged to $438 million in Q1, again much higher than the $16 million profit they achieved in Q1 2020. However analysts were quick to point out that some of the profit came from trading Bitcoin ($101m) and also the sale of Environmental Credit sales to other car manufacturers ($518m).
Elon Musk also took a significant chunk of the profits home with a $299 million payment as part of a controversial compensation plan. Musk claimed that the Model 3 was now the best selling sedan in its class for either EV or ICE. He also predicted that the Model Y would eventually dominate the SUV segment, although they face increasing competition from the likes of the VW ID.4, Hyundai IONIQ 5 and Rivian R1T.
One of Tesla’s unique selling points is their easy to use Supercharger network which they continue to roll out at pace, growing the number of Supercharger stations to over 2,700 worldwide, a 41% increase YoY.
Despite posting such impressive results, Tesla shares dropped by up to 4% on Tuesday with analysts blaming the lack of a specific estimate for car deliveries in 2021 and general high expectations for a company that has shown phenomenal growth over the last years. However it looks like Tesla (the most valuable car company in the world) is on track to deliver almost three-quarters of a million cars in 2021.
This extraordinary growth not only shows the increasing demand for EVs, but also puts more pressure on the traditional car makers to improve their EV offering or risk losing more market share to Tesla and other new challengers.