On Monday, Tesla’s (NASDAQ:TSLA) record earnings report knocked it out of the park by most measures. But while sales and earnings went up, its stock remained flat.

What’s the big deal? Despite rising material costs and a chip shortage that’s impacting production for all carmakers, Tesla’s record numbers are an incredible feat.

• Profits are rising — making over $1b in quarterly profits for the first time, up 10x from the same period in 2020.
• Tesla is making cars at a lower cost — with margins rising to the highest it’s ever been.

There also weren’t any Bitcoin-related gains inflating its profits. And unlike previous quarters, where earnings came from selling carbon credits, the majority came from auto sales.

So why is its stock barely moving? After rising 7x in 2021, the upside has already been factored into its stock price.

• Near-term catalysts for its stock include the rollout of its Cybertruck and advancements in its self-driving tech.
• But self-driving tech startups like Waymo and Cruise are much further ahead, and Cybertruck production is delayed until 2022.

Then there’s China risk: Tesla doesn’t disclose how much of its sales are from China — the largest electric vehicle market in the world — where it set up a factory in Shanghai two years ago.

• Recent negative publicity in China helped send its Chinese sales down 60% between March-April.
• With an ongoing trade war between China/US, China may look to retain more of its sales for Chinese manufacturers like NIO or BYD.

Investors: While the EV market is still in its early days, Tesla’s stock likely won’t see the hyper-growth of an emerging company. Don’t expect a repeat of 2020.