Tesla Share Price: Beats on Revenue, Misses on GAAP EPS

Summary:

Tesla share price unchanged after the Q1 2021 earnings. The company lost money producing cars, gaining more by selling regulatory credits.

One of the most awaited Q1 2021 earnings was the one of Tesla – the electric vehicle manufacturer. The company reported mixed results yesterday after hours, and so the Tesla share price was more or less unchanged.

Tesla has reported revenues of $10.39 billion, up over 73% on a YoY basis. It also reported that the automotive gross margin of 26.5% exceeded the 24.3% consensus. Moreover, the Non-GAAP EPS beat expectations by $0.15, while the GAAP EPS underdelivered by $0.08.

Depending on how you want to look at the results, they may appear positive or negative. On the positive front, Tesla did beat expectations. However, on the negative front, the financial statements for the first quarter revealed that the company sold $518 million in regulatory credits. In other words, these have nothing to do with producing electric vehicles. If we subtract this amount from the results, Tesla actually lost $80 million on the quarter.

Moreover, Tesla made over a $100 million profit by selling some Bitcoin it bought in the first quarter. If we discount this too, then the results are awful. As such, it is no wonder that Tesla share price is unchanged after the report.

Tesla Share Price Technical Analysis

The technical perspective is bullish while above the rising trendline. Bears may want to wait for a break below it to sell short against the opposite trendline and target the measured move of a head and shoulders pattern.