Tesla 1Q earnings 7 occasions greater than yr in the past on sturdy gross sales | Health

DETROIT (AP) — Tesla reported Wednesday that its first-quarter internet earnings had been over seven occasions higher than a yr in the past, powered by sturdy gross sales regardless of world provide chain kinks and pandemic-related manufacturing cuts in China.

The electrical automobile and photo voltaic panel firm made a document $3.32 billion from January by way of March. Excluding particular objects similar to stock-based compensation, the Austin, Texas, firm made $3.22 per share. That soundly beat Wall Street estimates of $2.26 per share in response to knowledge supplier FactSet.

Revenue for the quarter was $18.76 billion, additionally beating estimates of $17.85 billion. It was boosted by a number of value hikes meant to offset rising prices of lithium, nickel, cobalt and different uncooked supplies.

It could also be tougher for Tesla to publish comparable numbers later this yr. It’s dealing with prices from ramping up new factories in Germany and Texas, in addition to rising commodity costs. It’s additionally taking a look at elevated competitors as startups and legacy automakers roll out extra electrical fashions.

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But CEO Elon Musk stated on a convention name with analysts that ready lists are lengthy at the same time as Tesla raised costs anticipating prices that may come in the course of the subsequent six to 12 months. “We are obviously not demand limited, we are production limited,” he said.

Tesla has been spared many increases because of long-term contracts that have kept costs down, Musk said, but those contracts will expire. Some suppliers are seeking 20% to 30% price increases from last year through the end of this year, he said.

“We hope we don’t need to increase the pricing further,” Musk stated.

Tesla’s lowest-priced car, the Model 3, now starts at nearly $47,000.

Tesla has also been able to control costs with manufacturing efficiencies and a new battery chemistry that has higher energy density per cell, the company has said.

The company said its weekly production for the quarter was strong, but a spike in COVID-19 cases brought the temporary shutdown of its factory in Shanghai, as well as part of Tesla’s supply chain.

Tesla seems to have dealt with parts shortages better than the rest of the industry. Musk said the Shanghai plant is operational now but lost a couple of weeks of production. He still expects Tesla to build 1.5 million vehicles this year.

Shares of Tesla closed Wednesday down nearly 5% at $977.20, but it more than regained the day’s losses in extended trading, after the company released its numbers. The stock is down about 7.5% so far this year.

Musk was not requested about his $43 billion hostile bid to take over Twitter.

Despite the Chinese production and supply chain problems, Tesla reiterated its guidance of 50% annual average growth in vehicle deliveries over the next several years. “The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain,” the company said.

Although production has started at the Texas and German factories, Tesla said the ramp up at both sites will take time. The company said its factories have run below capacity because of parts supply shortages.

Tesla also says it expects “Full Self-Driving” beta test software to be released to all U.S. customers who purchased the feature by the end of the year. Musk said about 100,000 owners are testing the system now, on public roads. Tesla has said the cars cannot drive themselves, despite the name, and drivers must pay attention and be ready to intervene at all times.

Tesla delivered a record 310,000 vehicles worldwide in the first quarter, up roughly 68% from the same period in 2021. It delivered 185,000 vehicles in the first quarter of last year.

Last year the company delivered a record 936,000 vehicles, an 87% increase over 2020 numbers. The company said in February that it expects 50% annual growth in sales, meaning it expects about 1.4 million vehicles to be delivered this year.

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