Tesla plummeted 4.53% on Tuesday, and its market value evaporated by US$32.1 billion overnight or about 208.2 billion yuan. The current total market value is US$676.4 billion.
The main reason for Tesla's crash was the first-quarter earnings report after Monday's trading hours. The financial report shows that Tesla's total revenue in the first quarter was 10.389 billion U.S.U.S. dollars, an increase of 74% compared to 5.985 billion U.S.U.S. dollars in the same period last year, slightly lower than analysts' expectations of 10.414 billion U.S.U.S. dollars; GAAP net profit attributable to common shareholders For 438 million U.S.U.S. dollars, it set a record for the highest quarterly profit in history, and it has achieved positive profitability for seven consecutive quarters.
It seems that Tesla's profitability is not inadequate, but Tesla's profitability does not depend on selling cars but on selling carbon credits and speculating in Bitcoin.
Carbon credits have played an essential role in boosting Tesla's revenue and net profit. As the name suggests, selling carbon credits is to sell carbon emission credits to rival car companies. Tesla earns income by selling zero-emission vehicle (ZEV) credits and greenhouse gas emission (GHG) credits to other manufacturers. These manufacturers use the purchased credits to meet market regulations instead of making their own electrified or energy-saving vehicles.
In the first quarter, Tesla's revenue from carbon credits was as high as $518 million. In the past year, Tesla relied on the revenue from carbon credits to achieve multiple quarterly profits and reversed the state of loss a year ago. In the second, third, and fourth quarters of last year, the contribution of carbon credits was about 400 million U.S.U.S. dollars. Unexpectedly, this revenue in the first quarter of this year climbed to 518 million U.S.U.S. dollars. Look at the GAAP net profit for the same period of only $438 million.
In addition to carbon credits, the most exciting thing is Tesla's
revenue. Tesla bought 1.5 billion U.S.U.S. dollars of Bitcoin in February this year, and the latter has been gaining momentum this year, only in the first quarter. The price of Bitcoin has doubled. Tesla sold 272 million Bitcoin assets at a high point, bringing in $101 million in revenue, which further promoted Tesla's net profit growth.
Excluding Bitcoin's $100 million in revenue and adding $518 million in carbon credit revenue, Tesla's net profit for the quarter was negative.
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