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Tesla's numbers are always exciting. It used to be all about car production in relation to Elon's often outlandish projections. As the company has matured, the focus is shifting to margin and profit.
On Monday the company released their first quarter numbers which were mostly in line with expectations. Over the last year, sales for the period grew 74% to $10.4 billion. Of that, $9 billion came from Automotive, $495 million came from Energy Generation and Storage, and $893 million came from Services.
This all amounted to profits of $438 million and debt reduction of $1.2 billion for the period. With the business maturing, we are starting to see the business pay for itself.
The Model 3 was the best selling premium sedan in the world, the Model Y production is cooking in Shanghai and the new Model S should start production shortly.
It has been a joy to watch Tesla go from a dream to a reality. As the business matures we can most likely wave good bye to the 1000% returns in a few years but that is no reason not to buy shares now.
Transport and energy are two massive parts of the global economy. Tesla has the potential to disrupt and then take a huge slice of both these industries. The company is big, but it can certainly get bigger. We still believe the company deserves a small allocation in your portfolio.
