Tesla made more than $3 billion in profit in the first quarter

Amid supply chain restrictions and production delays in China, Tesla reported a profit of $3.3 billion in the first quarter of 2022. Tesla turned that profit into just over $18.7. billion dollars, the company announced. That represented an 81 percent year-over-year increase, compared to $10.4 billion in revenue in the first quarter of 2021.

The company reported $679 million in emissions credit sales to other automakers, compared to $314 million in credit sales in the fourth quarter of 2021. The company generates this revenue by selling these credits to automakers that produce fewer “clean” cars than they require. The US government and the European Union.

Credit sales have come in handy in past years, helping Tesla turn a profit while its auto manufacturing business was struggling. Last summer, the company reported that its manufacturing and energy sales business was profitable for the first time not counting emissions credit sales.

It was undoubtedly a noteworthy quarter for Tesla. The company opened two new plants — one in Berlin on March 22 and a second in Austin, Texas, on April 8 — while also having to close its Shanghai factory for several weeks amid rising COVID numbers. The costs of opening these two manufacturers, while also struggling to keep its Chinese factory in business, are expected to lower Tesla’s numbers this quarter.

The company says it began production in Berlin last month, and that it began delivering the Model Y from Texas in April. The company also said it will produce 4,680-cell chassis battery packs in Texas later this year, along with standard 2,170-cell packs.

The earnings report also follows a strong quarter for Tesla’s delivery and production. The company said it sent 310,048 vehicles to its customers in the first quarter of 2022. Tesla CEO Description of Elon Musk The feat was called “too tough,” citing global supply chain issues and the shutdown of the company’s Shanghai factory amid rising numbers of COVID-19 cases. Despite this, Musk also predicted on the earnings call that the company would be able to ramp up production and produce 1.5 million vehicles this year.

Tesla said it delivered 295,324 Model 3 and Model Y vehicles, while 14,724 were for the Model S and X. Deliveries increased slightly from 308,600 deliveries in the previous quarter and surpassed 184,800 Tesla deliveries in the first quarter. from 2021, which is 68 percent year-over-year. In terms of production, Tesla said it built 305,407 vehicles in the past three months.

The company also continued its drive to drive more profit per vehicle — its gross vehicle profit margin was 32.9 percent in the first quarter of 2022, compared to 26.5 percent in the first quarter of 2021. In its notes to investors, the company said it raised the average The selling price of its cars and the number of cars it was distributing increased.

Tesla has weathered the global supply chain crisis better than its competitors, posting record deliveries and profits for several quarters. The company was able to avoid the same types of headaches as other global automakers by acquiring different chipsets and quickly rewriting software.

It was also a busy neighborhood for Tesla for reasons unrelated to its finances. The company has received recall notifications for a variety of crash features, including a pedestrian warning sound that is masked by loud music playing through external “Boombox” speakers and a side of the Full Self-Driving beta that allows vehicles to roll through some stop signs without stopping. Complete stop.

Tesla’s legal drama continued to escalate this quarter. The company was sued by the California Civil Rights Agency after several employees filed reports of racial discrimination and harassment. A former black Tesla employee has been awarded $137 million in damages after he reported a hostile work environment where he heard “daily racist nicknames”. (The judge later reduced the amount of compensation to $15 million, calling the jury’s decision “exaggerated.”)

And of course, there’s Elon Musk’s surprise offer to buy Twitter for $48 billion. It’s unclear exactly how Musk’s hostile takeover efforts could extend to affect Tesla or its shareholders, but at least, it’s bad timing, given the number of significant milestones Tesla still needs to achieve this year.

Update April 20 6:53 PM ET: Elon Musk production forecast added.


#Tesla #billion #profit #quarter

Leave a Comment

Your email address will not be published.