Electric carmaker Tesla Inc marginally beat Wall Street expectations for first-quarter revenue on Monday boosted by a jump in environmental credit sales to other automakers and liquidating some bitcoins.
Tesla posted record deliveries within the half-moon despite a worldwide chip shortage that has slammed auto sector rivals, but its profit wasn’t driven by auto sales.
Tesla, which had invested $1.5 billion in bitcoin, trimmed its position by 10% during the quarter, said Chief treasurer Zachary Kirkhorn. Tesla said proceeds from sales of digital assets amounted to $272 million with a $101 million “positive impact”.
“We do believe future within the value of bitcoin,” he said. “We intend to carry what we’ve future and still accumulate bitcoin from transactions from our customers as they purchase vehicles.”
Musk tweeted that he has not sold any of his bitcoins.
Tesla has posted profits for seven quarters during a row, most quarters driven by environmental credits.
Tesla earned $518 million from sales of these credits, up 46% from a year earlier. Tesla earns credits for exceeding emissions and fuel economy standards and sells them to other automakers that come short.
However, not all of the company’s revenues came from selling cars.
The company bought $1.5bn of Bitcoin during the primary quarter, on the other hand, cut its position by 10%, which contributed $101m to its revenues.
Tesla recently made it possible for patrons to get cars in Bitcoin, allowing it to accumulate more of the cryptocurrency.
“We intend to carry what we’ve future and still accumulate Bitcoin from transactions from our customers as they purchase vehicles,” the company’s chief treasurer, Zachary Kirkhorn, told investors.
Tesla also earns credits for exceeding emissions and fuel economy standards then selling them to other carmakers that come short so that they can avoid penalties.
The company earned $518m from sales of these credits within the half-moon, a rise of 46% over an equivalent quarter in 2020.
Tesla said it delivered roughly half 1,000,000 cars in 2020, and 185,000 within the January-to-March period.
The company expects its deliveries to extend by 50% annually and is ramping up production at its existing facilities in California and Shanghai while it builds its new factories in Berlin and Texas.
Tesla is that the world’s most precious auto company, with its share price, pushed higher by investors depending on strong growth in electric vehicles within the coming years.
However, the corporate makes far fewer cars than companies like Toyota and Volkswagen, which each sold quite nine million cars last year.