What's going on?

Tesla reported better-than-expected quarterly results earlier this week, and the electric vehicle (EV) giant didn�t even need to shift out of low gear.

What does this mean?

Tesla made 71% more from EV sales than it did the same time in 2020, which investors might�ve seen coming after the company announced earlier this month that it delivered more of them than ever last quarter (tweet this). Thing is, it didn�t just sell more, it made more too: the EV giant�s profit soared by 760% to hit a new quarterly record. And it did it all with one hand tied behind its back: it�s been affected by shortages of chips and other key parts just like other carmakers.

Still, those shortages are taking and will continue to take their toll, so Tesla has decided to hold back on releasing any new models this year � including the Cybertruck, which is as highly anticipated as it is unpleasant to look at. Record results be danged: investors�initially sent the company�s stock down 5%.

Why should I care?

The bigger picture: Tesla�s backing China.
Tesla�s still confident it can hit its goal of delivering 50% more vehicles this year, and the shoe certainly fits: analysis from BloombergNEF estimates that global EV sales will be nearly 60% higher this year than last. And since China ��the world�s biggest EV market ��is expected to make up over half of all those sales, it�s no wonder Tesla�s been upping its investment in the country.

Zooming out: All for one, one for all.
Tesla is such a powerhouse on its own that Renault, Nissan, and Mitsubishi announced on Thursday that they�re teaming up: the three carmakers are jointly investing $26 billion into EVs over the next five years, in hopes of sharing both expertise and expenses. But not everyone is convinced: some analysts think that the companies� non-EV businesses will have to start generating a lot more cash if they want to foot the bill on those lofty ambitions.