"Tesla Sales Surge Despite Profitability Decline, 'Also Sold Bitcoin'"

[Asia Economy New York=Correspondent Baek Jong-min] Electric vehicle maker Tesla continued its rapid growth. However, amid evaluations that profitability fell short of expectations, the stock price declined in after-hours trading. Negative views are spreading, suggesting that Tesla may have sold Bitcoin to cover the drop in profitability.

[Image source=Reuters Yonhap News]

On the 26th (local time), Tesla announced that its revenue for the first quarter of this year (January to March) reached $10.4 billion (approximately 11.55 trillion KRW), a 74% increase compared to the same period last year. Earnings per share were 93 cents, significantly exceeding the expected 79 cents. Net profit reached $438 million, marking the highest quarterly record with seven consecutive quarters of profit, but it fell short of the expected $591 million.

The number of vehicles delivered in the first quarter was 184,877, nearly double that of the same period last year. Tesla achieved this performance solely with the mass-market Model 3 and Model Y, without new production of the Model S and Model X. Growth in China was evaluated as a major contributing factor. Tesla forecasted that the number of vehicles to be delivered this year would reach 500,000, an increase of about 50% compared to the previous year.

The Wall Street Journal (WSJ) evaluated that Tesla posted solid results despite accidents occurring during semi-autonomous driving, production halts due to semiconductor shortages, and the rise of competitors. WSJ reported that 70% of electric vehicles sold in the United States are Tesla vehicles.

Elon Musk, Tesla’s CEO, expressed concern during a conference call, saying, "Vehicle demand is the highest we have ever seen, but sourcing parts is insanely difficult." Tesla also revealed that some semiconductor parts were replaced with alternatives.

While the growth trend was confirmed, there was also analysis that profitability declined. This was due to increased costs from production facility transitions and a focus on selling mass-market vehicles, which lowered the average selling price. The company explained that production cost reductions offset the decline in sales prices.

Reliance on one-time gains remained high. Carbon credit sales increased from $310 million in the previous quarter to $500 million.

Bitcoin sales were particularly notable. Criticism has been raised that Tesla purchased $1.5 billion worth of Bitcoin to encourage investment and then took profits.

Jack Kirkhorn, Chief Financial Officer (CFO), nicknamed the ‘Coin Master,’ stated that about 10% of the Bitcoin holdings were sold, generating a profit of $100 million. He also said, "We will hold the Bitcoin we currently own long-term and continue to hold the Bitcoin secured from vehicle sales."

Tesla’s stock price rose 1.2% in regular trading before the earnings announcement but fell 2.4% in after-hours trading following the announcement.

This content was produced with the assistance of AI translation services.