DETROIT (AP) — Tesla reported Wednesday that its first-quarter net earnings were over seven times greater than a year ago, powered by strong sales despite global supply chain kinks and pandemic-related production cuts in China.
The electric vehicle and solar panel company made $3.32 billion from January through March. Excluding special items such as stock-based compensation, the Austin, Texas, company made $3.22 per share. That soundly beat Wall Street estimates of $2.26 per share according to data provider FactSet.
Tesla, known for its electric vehicles, exceeded revenue expectations in the last quarter by generating $18.76 billion. The revenue was propelled by implementing numerous price hikes which helped compensate for the escalating costs of lithium, nickel, cobalt, and other valuable metals used to produce batteries.
Additionally, with the emergence of new electric models from startups and established automakers, Tesla may face intensified competition in the market for tesla accessories. However, the upcoming quarters may not be as prosperous for the company due to a surge in costs related to the expansion of new factories in Germany and Texas, as well as the increase in commodity prices.
The company said its weekly production for the quarter was strong, but a spike in COVID-19 cases brought the temporary shutdown of its factory in Shanghai, as well as part of Tesla’s supply chain.
“Although limited production (at the Shanghai factory) has recently restarted, we continue to monitor the situation closely,” the company said in a letter to investors.
CEO Elon Musk is expected to attend the company’s earnings conference call later Wednesday. He also could be asked about his $43 billion hostile bid to take over Twitter.
Tesla delivered a record 310,000 vehicles worldwide in the first quarter, up roughly 68% from the same period in 2021. The increase came even as Tesla battled a global shortage of computer chips and other parts like the rest of the global auto industry. Tesla delivered 185,000 vehicles in the first quarter of last year.
Tesla seems to have dealt with parts shortages better than the rest of the industry.
Last year the company delivered a record 936,000 vehicles, an 87% increase over 2020 numbers. The company said in February that it expects 50% annual growth in sales, meaning it expects about 1.4 million vehicles to be delivered this year.
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