Tesla profit growth boosted by bitcoin

Tesla has reported total gross profit increase of 79 per cent to $2.2 billion in the first quarter of 2021.

The electric vehicle company’s revenue increased to $10.4 billion in the same period, compared to $6 billion in 2020.

Tesla, which invested $1.5 billion in bitcoin earlier this year, also announced that sales of digital assets came to $272 million.

The company reduced its position by 10 per cent, which meant the cryptocurrency sales contributed to $101m of its revenues.

In February the business said that it expected to begin accepting bitcoin as a form of payment for its products.

“Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product costs reductions and sale of Bitcoin ($101m positive impact, net of related impairments, in “Restructing & Other” line) were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items,” said the company in its financial statement.

Tesla made 184,877 deliveries in the first quarter, up by 109 per cent.

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