Tesla (TSLA) is scheduled to report 1Q21 earnings after the bell with a conference call at 5:30 p.m.ET.
Solid (top-line) growth is expecte4d with analysts forecasting revenue to jump by 33% yr/yr to $9.9 bln.

TSLA has exceeded sales expectations for five straight quarters and their production and delivery performance in March implies that another sales beat may be on deck.

Tesla reported that EV deliveries soared by over 100% yr/yr to 184,800, easily beating the 177,000 consensus estimate in March. An stellar demand for the recently launched Model Y in China helped mitigate the effects of a global chip shortage. The updated Model S and Model X versions also delivered solid results and did not show serious lag/drag.

The bigger/better question is whether gross margins remained firm in an increasingly competitive environment. Last quarter, auto margins slipped to 20.7% from 23.7%. Promotional pricing was a factor in TSLA's $0.23 EPS miss last quarter so we’ll want to watch and see if that had any impact this time around. This could be the read through to why Tesla recently announced price increases.

Although EV's still account for ~86% of TSLA's total revenue, the company's other energy-related businesses are becoming a larger part of the overall story.

Investors will also be looking for any updates on TSLA's progress for its Semi truck, which is allegedly expected to roll out late this year. Any input on the Cybertruck is also welcomed as that has been seen driving around the Austin plant as well.

BITCOIN:

It will be interesting to see how TSLA’s bitcoin position will affect earnings, if at all. The company has stated that they are holding Bitcoin as a non-tangible asset and that they will account for depreciation should it occur. This will be an interesting wrinkle into their earnings reports moving forward.

FSD Fiasco:

TSLA's autonomous driving technology (FSD) will be a focal point following a recent deadly crash in Texas involving a Model S. TSLA CEO Elon Musk claims that the vehicle's autopilot wasn't enabled, but an investigation is ongoing with the National Highway Traffic Safety Administration looking into it. Late last week, videos surfaced from China showing that Tesla’s were forbidden from driving on their highways.

TECHS:

After falling lower by as much as 40% from record highs in February and early March, the stock is once again in rally mode ahead of its quarterly report.

RESULTS:

Tesla beats by $0.20, beats on revs, automotive gross margin up 240 bps from Q4 due to lower costs, expects annual growth in vehicle deliveries above 50% this year.

• Reports Q1 (Mar) earnings of $0.93 per share, $0.20 better than the S&P Capital IQ Consensus of $0.73; revenues rose 73.6% year/year to $10.39 bln vs the $9.89 bln S&P Capital IQ Consensus.

• Reports automotive gross margin of 26.5% vs. 25.5% year ago period and 24.1% in Q4. While the ASPs of its vehicles declined in Q1, auto gross margin increased sequentially, as costs decreased even faster.

• Adj. EBITDA of $1.8 bln vs. $951 mln year ago.

• Energy storage deployments grew 71% yr/yr in Q1, mainly driven by the popularity of Powerwall. Demand for Powerwall continues to far exceed our production rate. As a result, we recently shifted Powerwall deliveries to solar customers only.

• Solar deployments reached 92 MW in Q1, TSLA's strongest quarter in 2.5 years. Solar Roof deployments grew 9x compared to the same period last year.

• First deliveries of the new Model S should start very shortly, Model Y production rate in Shanghai continues to improve quickly and two new factories Berlin and Texas are making progress.

• TSLA is currently building Model Y capacity at Gigafactory Berlin and Gigafactory Texas and remains on track to start production and deliveries from each location in 2021. Gigafactory Shanghai will continue to expand further over time. Tesla Semi deliveries will also begin in 2021.

• Over a multi-year horizon, TSLA expects to achieve 50% average annual growth in vehicle deliveries. In some years TSLA may grow faster, which it expects to be the case in 2021.

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