JEPI - Dissecting Tesla's Mixed Earnings Announcement

• In 2020, Tesla received $1.58 billion in EV tax credits, but only made $721 million total, so the company actually lost $859 million from making EVs! Clearly, that trend is persisting in the first quarter of 2021.
• However, Tesla is becoming increasingly efficient, so the focus is now shifting to its new Berlin factory. If Tesla can finally make money on its EV manufacturing without incorporating its EV tax credits, then this will become the big news - that Tesla can potentially compete long term with the efficiency of the legacy auto manufacturers like Ford, GM and VW Group.
• The latest FOMC statement and Fed Chairman Jerome Powell's press conference just confirmed that we remain in a "Goldilocks" environment of strong economic growth and ultra-low key interest rates.

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