Slipping into profanity on a call with analysts after the results on Wednesday, Musk called current stay-at-home orders “fascist” and said it was a serious risk to the business.
His remarks come around a year after Tesla managed to end a series of legal and regulatory rows over Musk’s social media posting by agreeing restrictions with regulators.
A morning round of research notes from major investment banks saw analysts avoid the issue and focus on the fundamentals of Tesla’s business.
Analysts with J.P. Morgan said important take-aways, included its “unexpectedly higher” regulatory credits of $354 million in the quarter.
Regulatory credits is the money Tesla receives from other automakers that buy the company’s carbon emissions credits to meet stricter regulation.
“The highlight of the result was a solid gross margin beat,” Credit Suisse analysts wrote, saying gross margins on both the Model Y compact utility vehicle and its China-made Model 3 had come as a positive surprise.
Tesla’s market cap currently stands at around $147.38 billion, according to Refinitiv data.
The company’s third profit beat in a row comes at a time when the COVID-19 pandemic has hammered auto sales and production in the United States.
Canaccord Genuity said the strong gross margin at 20.6% was proof of “a meaningful operational improvement that the company has made over the past several quarters”.
Company-wide automotive gross margins in the first quarter jumped to 25.5%.
Tesla said on Wednesday it would revisit its outlook for net income and cash flow in its next quarterly earnings.
Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.
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