DETROIT — Tesla reported Wednesday that its first-quarter net earnings were over seven times greater than a year ago, powered by strong sales despite global supply chain kinks and pandemic-related production cuts in China.
From January to March, the electric car and solar panel companies made $3.32 Billion. With special items excluded, such as stock-based pay, Austin’s Texas-based company was able to make $3.22 per shared. According to FactSet data provider, this beat Wall Street’s estimates of $2.26 per Share.
The quarter’s revenue was $18.76 Billion, beating expectations of $17.85 Billion. The increase in lithium, nickel, cobalt, and other precious metals required to make batteries was one of the reasons for this rise.
Tesla might have a harder time posting similar figures later this year. It’s facing costs from ramping up new factories in Germany and Texas, as well as rising commodity prices. It’s also looking at increased competition as startups and legacy automakers roll out more electric models.
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.
“Although limited production (at the Shanghai factory) has recently restarted, we continue to monitor the situation closely,” the company said in a letter to investors.
Tesla seems to have done a better job of addressing parts shortages than other companies in this industry.
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Tesla shares closed on Wednesday at $977.20 down almost 5%, but increased 4% during extended trading after the company announced its financial results. So far, Tesla shares are down 7.5%.
CEO Elon Musk is expected to attend the company’s earnings conference call later Wednesday. Elon Musk could also be asked questions about the $43 billion hostile bid by Twitter to take control of it.
Tesla maintained its target of maintaining a 50 percent annual increase in vehicle deliveries, even with the Chinese supply chain and production problems. “The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain,” the company said.
Tesla says that production at its Texas and German plants has already begun, but it is expected to take some time for the sites to fully ramp up. Tesla stated that its plants are currently operating below their capacity due to shortages of parts.
Tesla also says it expects “Full Self-Driving” beta test software to be released to all customers who purchased the feature by the end of the year. Tesla claims that cars can’t drive by themselves, despite their name. Therefore, drivers need to pay close attention and be prepared to take control of the situation at all times.
Tesla shipped a record number of vehicles in the world’s first quarter. This is 68% more than the 2021 period. In the last quarter, Tesla sold 185,000 cars.
The company shipped a record number of 936,000 vehicles last year, which was 87% more than the 2020 figures. In February, the company stated that they expect a 50% increase in annual sales. This means it anticipates about 1.35 million vehicles being delivered in this year.
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