Tesla makes $3.3 billion in profit, with 80 percent increase in sales amid price hikes and vehicle shortages

According to its latest earnings figures, Tesla is now generating $1 billion in profits per month.

American electric car specialist Tesla It revealed a record net profit of $3.32 billion in the first quarter of 2022, marking its eleventh consecutive quarterly profit after initially posting $5 billion in financial losses over the past decade.

Despite raising the prices of its electric cars amid global supply chain shortages and rising manufacturing and material costs, Tesla managed to increase its sales in the first quarter by 80 percent compared to the same period last year.

The electric car maker said it delivered 310,000 cars Globally from January to March 2022, with total gross revenue $18.8 billion In the quarter ended March 31, 2022 – up from $10.4 billion in the previous year.

Those results saw the company beat analysts and investors’ expectations, with Tesla shares rising 5 percent after closing regular trading.

It is also believed that Tesla co-founder and CEO Elon Musk – currently the richest man in the world – is also in line with a bonus of $23 billion in stock options as a result of the company’s record performance so far in 2022.

Although Tesla is the world’s largest manufacturer of battery-powered cars, its overall sales are modest compared to other major car brands.

Tesla sold 310,000 cars in the first three months of 2022 globally.

Japanese auto giant Toyota – currently the world’s largest automaker – sold more than two million vehicles globally in the first three months of 2022, including 514,592 vehicles during the same period in North America alone.

Despite Tesla’s recent growth in sales and profits, it wasn’t surprising that it suffered a loss in its formative years.

Tesla initially reported quarterly losses totaling more than $724 million from the beginning of 2011 through the end of 2013.

This number contributed to Tesla’s cumulative losses of $5 billion from 2011 to 2019, but it recovered its losses after reporting a net profit of $5.51 billion for the 2021 calendar year.

Financial expert Evan Lucas, head of strategy at Investsmart, an Australian online wealth portal, said Elon Musk’s recent drive to increase control of the auto parts supply chain will cement Tesla’s advantage as a “number one mover” in the electric vehicle space.

“The only thing Tesla has is an amazing first engine advantage,” said Mr. Lucas. to cut.

“It has an incredible spread in terms of diversification of operations and it now has incredible (intellectual property) which only now (old car companies) is catching up with.

“Tesla also continues to be the first to absorb the components that its cars need for the future. You can see what Musk is trying to do — he’s trying to control the entire chain, from manufacturing lithium to battery components.

“It’s almost Henry Ford style – it runs the assembly line out of the dirt [the consumer]. ”

year Tesla’s global sales, change from the previous year (Based on Tesla’s financial reports) produced cars
2021 936172an increase of 87.4 percent Model S, Model X, Model 3, Model Y
2020 499550an increase of 36 percent Model S, Model X, Model 3, Model Y
2019 367500an increase of 50 percent Model S, Model X, Model 3
2018 245,240an increase of 138 percent Model S, Model X, Model 3
2017 103,120by 35 percent Model S, Model X, Model 3
2016 76230an increase of 51 percent Model S, Model X
2015 50557an increase of 60 percent Models
2014 31,655an increase of 41 percent Models
2013 22477an increase of 625 percent Models
2012 3100 Model S, Roadster (2008 to 2012)

Source: Tesla Financial Reports.

Speaking to investors after the earnings announcement, Elon Musk was confident the company could sustain its growth, saying his “best guess” was that Tesla could produce 1.5 million vehicles in 2022 and would likely achieve a 60 percent increase in sales. for this year.

However, Tesla warned that its factories will likely continue to operate below capacity “throughout the remainder of 2022”, as will the rest of the auto industry.

Some analysts have expressed doubts that Tesla can overcome the supply shortages and production issues plaguing other automakers, with production restarting at the company’s massive Shanghai plant only recently amid China’s aggressive anti-coronavirus policies.

US investment firm Wedbush Securities said, “A strong demand story for Tesla has been overshadowed by brutal production issues in China as well as the Rubik’s Cube supply chain, which continues to haunt Tesla and the rest of the auto/tech industry.” Before the announcement, according to New York times.

On the other hand, analyst Craig Irwin of US investment bank Roth Capital said Reuters Tesla’s price increases were “well beyond cost inflation”.

“Chinese production issues appear to be well managed, and we expect Austin and Berlin to make up for the 19-day downtime in Shanghai,” Irwin said.

After admitting earlier this year that incorrect sales numbers were reported in Australia, Tesla continues to dominate domestic electric vehicle sales with its Model 3 sedan.

Australians bought 4,417 Model 3 cars in the first three months of 2022 despite price hikes of up to $4,000 and waiting times of up to nine months.

This makes it the best-selling electric car in Australia by a significant margin, with the Mercedes-Benz EQA scoring second with only 318 models sold during the same period.

That means, based on the latest Australian new car sales data, the Tesla Model 3 sedan outperforms its closest electric competitor by about 14 to one.

Susanna Guthrie

Susanna Guthrie has been a journalist since she was 18 and has spent the past two years writing about cars for Drive, CarAdvice and CarSales and as an automotive columnist for various travel and hotel magazines. Susanna’s background is news journalism, followed by several years spent in celebrity journalism, entertainment journalism, and fashion magazines and a short stint hosting a travel TV show for Channel 10. She joined Drive in 2020 after spending a year and a half at the helm of Harper’s BAZAAR and ELLE online platforms. Susanna holds a BA in Media and Communications from the University of Melbourne and has worked as an intern at Time Inc in New York City. She also completed a TV presenting course with the National Institute of Dramatic Art.

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