"Tesla earned almost zip in repeatable, bedrock profits on the EV side. Yet Musk greatly ramped his already super-ambitious investment agenda for pending blockbusters, 'revolutionary' offerings that he's long promised as a year or two away, but that suffer serial delays."
"In Q1, Tesla posted GAAP profits of $491 million. That's already a depressing number. At its peak in 2023, Musk's company was averaging four times that number at around $2 billion a quarter."
"Almost all of Q1 earnings - $470 million after-tax to be exact - flowed from the carbon credits line ($297 million) and gains on trimming."
Tesla's recent earnings call revealed a significant decline in profits from its core EV business, with Q1 showing only $491 million in GAAP profits. Most of this profit stemmed from carbon credits and asset sales rather than sustainable vehicle sales. CEO Elon Musk continues to promote ambitious future projects like robotaxis and humanoid robots, despite ongoing delays. The question remains about how Tesla will finance its increasing capital expenditures when its primary revenue source is diminishing, raising concerns about shareholder returns.
Read at Fortune
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