Tesla reports first quarter profit of 3.3 billion and exceeds expectations

Elon Musk’s group saw its net profit multiply by seven over the period, while its turnover rose by 81%.

Tesla managed to deliver record results in the first quarter of 2022 despite problems with its supply chain and Covid-19, which have slowed production at its factories, and rising commodity prices.

The turnover of the group of Elon Musk, supported by the increase in its deliveries and the prices of its cars, climbed by 81% to 18.76 billion dollars. 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.

Shortage of semiconductors, Covid-19…

The sites of the group led by Elon Musk “have operated below capacity for several quarters as the supply chain has become the main limiting factor, which is expected to continue throughout (…) of 2022Tesla commented in a statement. 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 having been confronted with the “increase in the price of certain raw materials in recent months“. The group consequently raised its selling prices.

310,048 vehicles delivered

But, despite the logistical difficulties, he managed to deliver 310,048 vehicles, a record. Tesla has also maintained its long-term objective of increasing its deliveries by an average of 50% per year, stressing that it wants to remain “focused on growing as fast 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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