Tesla Makes $ 438 MILLION in Net Profit in Record First Quarter as It Looks Down Federal Security Investigations for Recent Incidents
- Tesla set a new record in the first quarter with net income of $ 438 million
- During the first three months of 2021, Tesla said sales are up about 74 percent from last year to $ 10.4 billion.
- The sales spike comes at the same time that the company is facing federal investigations after a series of crashes related to the Autopilot feature
- CEO Elon Musk received $ 299 million in the quarter for achieving market value and operating milestones, the company said
Federal safety investigations and widely publicized crashes did not stop Tesla from setting a new quarterly record with net profit of $ 438 million.
During the three-month period ending March 31, Tesla said sales were up about 74 percent from last year to $ 10.4 billion.
CEO Elon Musk received $ 299 million in the quarter for achieving market value and operating milestones, the company said.
Almost 185,000 vehicles were sold worldwide, and all but 2,000 were cheaper Model 3 sedans and Model Y SUVs.
But the car company has recently come under fire, particularly for its Autopilot feature, after a series of crashes dating back to last year.
The accidents have prompted investigations by the National Transport Safety Board and the National Highway Traffic Safety Administration.
Tesla said sales are up about 74 percent from last year to $ 10.4 billion
During the three-month period ending March 31, Tesla said sales were up about 74 percent from last year to $ 10.4 billion. The stock rose about 1.2 percent during day trading
CEO Elon Musk received $ 299 million in the quarter for achieving market value and operating milestones, the company said
But while sales have soared, the company is recently facing federal investigations based on crashes involving the company’s autopilot
The most recent crash happened in Texas a few weeks ago, when two friends took a new Model S “out for a ride,” and the car swerved off the cul-de-sac and plowed into trees and then caught fire.
Police said no one was behind the wheel, which raised questions about how the car could drive, let alone its speed.
To engage Tesla’s autopilot, the car must think someone is behind the wheel by detecting the weight of their hands on the wheel. If not, the program will stop, but it may take up to 30 seconds to do so.
But Consumer Reports did its own experiment, showing that the Autopilot system could be ‘easily’ tricked into working without a driver behind the wheel.
CEO Elon Musk released a statement via Twitter two days after the fatal crash, saying that the data logs recovered from the crashed Model S “show so far that Autopilot was not turned on.”
Two friends were killed in a Tesla crash in Texas in mid-April after the vehicle crashed into a tree and caught fire with “no one in the driver’s seat.”
In mid-March, a Tesla Model Y hit a patrol car in Lansing, Michigan, while the driver had the vehicle’s advanced driver assistance system known as Autopilot, Michigan state police told the Washington Post.
Both crashes, and at least three others in recent weeks, have sparked federal investigations, according to the Washington Post.
Despite the investigation, Tesla, having delivered nearly half a million vehicles by 2020, expects this figure to rise by more than 50 percent this year, the Washington Post reported.
And the company’s stock is in a rip, rising more than 350 percent in the past year.
“The rate of growth will depend on our equipment capacity, operational efficiency and capacity and supply chain stability,” the company said in its quarterly letter to investors.
Plants in Berlin and Austin, Texas, are on track to start production this year, and the company said production of the Semi will start in 2021. The first deliveries of the new Model S should also start soon.