Tesla’s Q1 2021 Earnings Reveal Record-Breaking Sales in EV Market

Earlier this week, Elon Musk, CEO and Founder of Tesla Motors hosted Tesla (NASDAQGS: TSLA +3.67%) ‘s Q1 2021 investor earnings call. While other automakers struggled during the pandemic, Tesla flourished. Those who tuned in were privy to the information regarding Tesla’s stellar start to the year. Since the beginning of this financial year, Tesla has been reporting stunning sales numbers and it has just confirmed the best quarterly sales tally ever!

The rocketing profit figure is attributed to the 2,01,304 unit sales across the globe in the second quarter of this financial year. The American Electric Vehicle brand endured a highly appreciable positive sales growth of 121 percent from the same period, previous year.

Tesla Model 3 and Model Y

A bulk of these sales have come from entry-level Model 3 and Model Y. Meanwhile, Model S and Model X could capture only 1,895 units of the total sale made. The feat is significant since Tesla slashed its entry-level Model 3 and Model Y prices in February 2021. The whopping sale volume has yielded a profit of around USD 1.14 billion, which is the company’s largest-ever quarterly profit, almost 10 times the figures of 2020. This could be the reason behind Tesla’s announcement to make the Model Y its best-selling EV by 2022.

Tesla Founder & CEO – Elon Musk

Musk said in the press call, “We achieved our highest ever vehicle production and deliveries, the company announced during its quarterly investor call. Interestingly Tesla managed to accomplish that without making any more Model S or X over that time.”

He further added, “Over the past couple of quarters we delivered roughly a quarter-million Model 3s. That translates into annualized rates of half a million per year. We think model Y will be the best-selling car, or vehicle, in the world — probably next year.”

The massive win has certainly boosted the company’s morale as it claims that it’s on the right track to demonstrate before the entire world that an electric vehicle can be a category leader and can outsell its gas-fueled contemporaries. Well, we believe if anyone can do this, it’s Tesla.

The way up was not all roses as tough challenges kept appearing before the EV Giant. In the successful quarter, due to massive demand, there was a significant shortage of semiconductors. This shortage was a big hurdle for Tesla which was already overwhelmed with surplus demand and low production rates. Proving itself to be self-sufficient and strong company, Tesla rose above the challenges by running operations close to the maximum capacity throughout.

The demand for Tesla cars took a massive leap as Tesla admitted that component shortage could severely impact the rate at which the cars will be manufactured and delivered in the second quarter of this year. Even Musk at an earnings call confessed that the chip shortage is a serious issue and could cease the production at some of Tesla’s manufacturing units.

However, Tesla rose to tackle this problem head-on again. Utilizing alternative chips and rewriting new software was an excellent game plan. For facing the supply issues with modules that control airbags and seatbelts and their performance, however, Team at Tesla is hard at work.

Tesla also announced that it is looking to continue to push the domestic energy supply market with its home battery and solar panel systems. With Tesla’s further expansion into renewable energy, Musk hopes that in the long term, “people will think of Tesla as much as an AI, robotics company, as we are a car company or an energy company.”

Reliable sources indicate that Tesla could postpone the production of the Cybertruck to 2022 due to semiconductor shortage and the brand’s eminent planning to finally debut in India soon.

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