Tesla profit hits a quarterly record

Tesla announced a solid quarterly financial performance Monday, reflecting continuing increases in sales and production around the world.

The electric-car maker reported earnings of 39 cents per share in the first quarter. That was a significant increase from the 24 cents per share it reported for the fourth quarter of 2020. A year ago, it earned just 2 cents per share in the first quarter as the coronavirus pandemic hurt sales and forced the shutdown of its plant in Fremont, Calif.

The quarterly profit of $438 million was Tesla’s highest ever.

Tesla CEO Elon Musk suggested further growth in the coming quarters, saying he believed the Model Y, the company’s small SUV, would become one of the world’s top sellers. “There’s a lot to be excited about in 2021 and 2022,” he said on a conference call with analysts after the results were announced.

Like other automakers, Tesla has struggled with a chip shortage, “one of the most difficult supply-chain challenges we’ve experienced,” Musk said. But he said the company was able to switch to chips that were easier to acquire.

Earlier this month, Tesla said it delivered a record 184,800 cars in the first three months of the year — more than double the total from the comparable period in 2020.

“Tesla continues to see growing pent-up demand throughout China and Europe,” Dan Ives, a Wedbush analyst, wrote in a report to investors before the Monday announcement.

In the United States, the Biden administration’s push to reduce greenhouse gas emissions and to support sales of electric vehicles is likely to help sustain demand for Tesla’s cars, Ives added.