Tesla reported on Wednesday that its first-quarter net earnings were seven times higher than a year ago, driven by strong sales despite the global. supply chain challenges and pandemic-related production cuts in China.
The electric vehicle and solar panel company earned $ 3.3 billion from January to March. Quarterly revenue was $ 18.75 billion, also surpassing estimates of $ 17.85 billion.
Shares of Tesla rose nearly 5% to $ 1,024 after its latest results were released.
“[W]With supply chain problems still a persistent widening in the automotive space, and logistical problems worldwide, we believe that these delivery numbers “like Cinderella” in a brutal supply chain context speak of a [electric vehicle] a trajectory of demand that seems quite robust for Tesla for the rest of 2022, “Wedbush Securities analyst Dan Ives said in a report.
More expensive cars
Tesla’s financial results were driven by multiple price increases for their vehicles designed to offset the rising costs of lithium, nickel, cobalt and other precious metals used to make batteries. The company’s Model X SUV now costs $ 114,900; the Model S costs $ 99,990; the Model 3 Performance costs $ 61,990; and the Model Y costs $ 62,990.
It may be more difficult for Tesla to publish similar issues later this year. It faces the costs of rising new factories in Germany and Texas, as well as rising commodity prices. It is also looking for greater competition as startups and legacy carmakers introduce more electric models.
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The company said its weekly production during the quarter was strong, but an increase in COVID-19 cases led to the temporary shutdown of its factory in Shanghai, as well as part of Tesla’s supply chain.
“Although limited production (at the Shanghai factory) has recently resumed, we continue to monitor the situation closely,” the company said in a letter to investors.
CEO Elon Musk is expected to attend the company’s earnings conference later Wednesday. You might also be asked about his $ 43 billion hostile offer to take over Twitter.
Record vehicle shipments
Tesla delivered a record 310,000 vehicles worldwide in the first quarter, about 68% more than in the same period in 2021. The increase came despite Tesla struggling with a global shortage of computer chips and other parts like the rest of the global automotive industry. Tesla delivered 185,000 vehicles in the first quarter of last year.
It seems that Tesla has coped with the shortage of parts better than the rest of the industry.
Last year, the company delivered a record 936,000 vehicles, 87% more than in 2020. The company said in February that it expected annual sales growth of 50%, meaning it expects this about 1.4 million vehicles will be delivered each year.
Earlier this month, the company celebrated the opening of its “Gigafactory” of a billion dollars more in Texas, with a massive private event attended by 15,000 people and organized by Musk. The new Travis County Factory also serves as the company’s next new home moving from California.
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