Tesla announces record first quarter results

Despite problems with its supply chain and Covid-19, with curtailed production at its factories, and rising commodity prices, Tesla managed to deliver record results in the first quarter of 2022. Elon Musk’s group business, buoyed by higher deliveries and car prices, soared 81% to $18.76 billion. And its net profit was multiplied by seven over the period, to reach 3.3 billion dollars. Its stock rose 4% in Wednesday’s electronic trading following the close of official trading on Wall Street.

The sites of the group led by Elon Musk “operated below capacity for several quarters, as the supply chain became the main limiting factor, which is expected to continue throughout (…) 2022”, a commented Tesla in a press release. In addition to the shortage of semiconductors, which has affected the entire automotive sector for more than a year, Tesla has also had to deal with spikes in Covid-19 contamination. In its Shanghai factory, for example, which has been under strict confinement for several weeks, the American electric car giant was only able to restart production on Tuesday, after more than 20 days of work stoppage.

Tesla also notes that it has been confronted with the “multiplication of the price of certain raw materials in recent months”. The group has therefore raised its selling prices. But, despite the logistical difficulties, he managed to deliver 310,048 vehicles, a record. Tesla has also maintained its long-term goal of growing its deliveries by 50% on average per year, stressing that it wants to remain “focused on growing as quickly as reasonably possible”. The group is betting for this on the start of production in its factories in Berlin, in March, and in Austin, Texas, in April. Tesla stresses that it has also emphasized the internal production of electric battery cells, the diversification of its suppliers and its direct supply of raw materials.

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