Tesla posts record Q1 profits buoyed by strong demand for electric vehicles – EQ Mag Pro
Musk optimistic about overcoming supply issues, foresees a big 2022 production gain.
Tesla reported that its first-quarter net earnings were over seven times greater than a year ago, buoyed by strong demand for its electric vehicles, with Elon Musk predicting output will grow at a fast clip for the rest of the year despite supply-chain challenges.
The EV company reported first-quarter profits of $3.3 billion, up 658 percent from the year-ago period on an 81 percent jump in revenues to $18.8 billion.
The first major US automaker to report financial results for the first three months, Tesla easily beat estimates with a record profit. It cautioned that production remains constrained by shortages and higher prices for key components, a common refrain for automakers due to global bottlenecks on supplies of parts such as semiconductors.
But Chief Executive Officer Musk said Tesla should be able to make up for any production shortfalls in the first half of the year from coronavirus-related shutdowns at its factory in Shanghai, and is on track to expand production to more than 1.5 million vehicles this year. It delivered about 936,000 cars in 2021.
“We may pull a rabbit out of the hat,” Musk said on a conference call on Wednesday. “Q3 and Q4 will be substantially higher.”
The Austin, Texas-based company posted strong gains in profit and revenue for the first three months, including the sale of regulatory credits totaling $679 million — more than double the previous quarter. Tesla has generated billions through sales of zero-carbon credits that allow other automakers to comply with stricter emissions regulations. But Chief Financial Officer Zach Kirkhorn said that credit gain was mostly due to a one-time $288 million benefit linked to stiffer U.S. emissions penalties.
Tesla reported that its first-quarter net earnings were over seven times greater than a year ago, buoyed by strong demand for its electric vehicles, with Elon Musk predicting output will grow at a fast clip for the rest of the year despite supply-chain challenges.
The EV company reported first-quarter profits of $3.3 billion, up 658 percent from the year-ago period on an 81 percent jump in revenues to $18.8 billion.
The first major US automaker to report financial results for the first three months, Tesla easily beat estimates with a record profit. It cautioned that production remains constrained by shortages and higher prices for key components, a common refrain for automakers due to global bottlenecks on supplies of parts such as semiconductors.
But Chief Executive Officer Musk said Tesla should be able to make up for any production shortfalls in the first half of the year from coronavirus-related shutdowns at its factory in Shanghai, and is on track to expand production to more than 1.5 million vehicles this year. It delivered about 936,000 cars in 2021. “We may pull a rabbit out of the hat,” Musk said on a conference call on Wednesday. “Q3 and Q4 will be substantially higher.”
The Austin, Texas-based company posted strong gains in profit and revenue for the first three months, including the sale of regulatory credits totaling $679 million — more than double the previous quarter. Tesla has generated billions through sales of zero-carbon credits that allow other automakers to comply with stricter emissions regulations. But Chief Financial Officer Zach Kirkhorn said that credit gain was mostly due to a one-time $288 million benefit linked to stiffer U.S. emissions penalties.
Shares of Tesla rose as much as 10.5 per cent to $1,079.90 in New York on Thursday, resulting in a nearly 2 per cent gain for the year. Profit totalled $3.22 a share, excluding some items, the automaker said on Wednesday. That beat the $2.27 average of analysts’ estimates. Increased sales of higher-margin vehicles and cost cuts helped Tesla improve its automotive gross margin to 32.9 per cent.
Source: PTI
