Here's the Secret Behind Tesla's Industry-Leading Margins

On Wednesday, Tesla (NASDAQ: TSLA) reported solid first-quarter results despite the supply chain challenges automakers faced during the period. And among the many impressive metrics in its report, one that should be of particular interest to investors is its industry-leading net profit margin of 17.7%.

Though its margin was boosted last quarter by a higher level of regulatory credits -- subsidies paid to companies that sell zero-emission vehicles -- its margin would still have amounted to a very healthy 14.6% excluding those credits' impact.

Data source: Tesla. Chart by author.

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Source Fool.com