Following a remarkable quarter-year financial result, US electric car specialist Tesla has posted a record profit – way beyond what it has received from selling eco credits to rival automotive companies.
US electric-car start-up Tesla has posted a record quarter-year profit of $US1.14 billion – after costs but before taxes – from a turnover of $US11.96 billion in the three months from April to June 2021.
It is the first time Tesla has eclipsed the $1 billion profit milestone in quarterly earnings and is more than 10 times the profit for the same period the prior year, which analysts have reported is “a sign of increasing financial health” for the company.
Furthermore, it is only the second time on record that Tesla’s profit has exceeded the revenue it has earned from selling eco credits to rival automotive companies.
Tesla’s financial report for Q2 2021 shows $US354 million of the $US1.14 billion net profit came from the sale of “environmental regulatory credits.”
For a price, rival car-makers can use Tesla’s zero emissions credits to reduce the cost of government penalties for selling high emission vehicles.
The only other reported instance of Tesla’s net profit exceeding the revenue from the sale of eco credits was in Q3 2019, when the company posted a profit of $US143 million after receiving $US134 million in regulatory credits.
Tesla’s latest financial result was the eighth quarter-year in a row it has posted a profit.
After many years in the red, this is the longest continuous period Tesla has been in the black.
To illustrate Tesla’s rapid rise, its latest quarter-year profit result of $US1.14 billion (after costs but before tax) compares to a $US104 million profit for the same period in 2020 – and is more than double the profit figure reported for Q1 2021 ($US438 million).
Financial news outlet Nikkei Asia attributed much of Tesla’s profit to the company delivering a record 201,250 cars globally, almost half of which were reportedly sold in China
“The company does not break down deliveries by country. However, according to the China Passenger Car Association, Tesla sold 92,463 cars in China during the second quarter,” Nikkei Asia reported.
Tesla does not reveal sales numbers in Australia, however Tesla-watchers claim the company has shipped a record number of Model 3 cars to Australia this year.
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Tesla posts record $US1.14 billion profit in best quarter-year result to date