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Tesla announced record Q1 numbers that surpassed analysts’ expectations in revenue and earnings per share despite supply chain issues.
Tesla Q1 Record by the Numbers
Tesla’s revenue for the first quarter ended March 31st, 2022, was $18.76 billion YoY, versus the $17.80 billion expected. Realized revenue also saw an 87% increase from the same period last year. In addition, the prominent EV company said that its main segment gross profit stood at $5.54 billion. Meanwhile, Tesla’s $3.22 beat out the $2.26 consensus for earnings per share. Also, regulatory credits made up $679 million of automotive revenue for the quarter.
Following the Q1 report, Tesla shares climbed 6% during the after-hours trading.
Tesla’s laudable Q1 outing came amid supply chain constraints that continue to hamper its optimal production efficiency. However, in its shareholder deck, Tesla ascribed revenue growth in part to the increase in the number of cars delivered. In addition, the EV manufacturer also stated that an increase in average sales prices also gave its bottom line a boost.
Early in the month, Tesla revealed that it delivered 310,048 vehicles during the first quarter, with Model 3 and Model Y vehicles constituting 95%, or 295,324. This was the closest approximation of sales disclosed by the EV company.
What Lies Ahead
CEO Elon Musk and CFO Zachary Kirkhorn explained future target projections during Tesla’s earnings call. For instance, the duo expressed confidence in Tesla growing by a further 50% over its 2021 figures. However, Musk and Kirkhorn also acknowledged that the EV firm may encounter some production strain in its quest to do so. This is because Tesla is already a month behind schedule at one of its Shanghai due to Covid-related shutdowns. Notwithstanding, Kikhorn moved to reassure investors by saying:
“Production is resuming at limited levels, and we’re working to get back to full production as quickly as possible.”
Musk also took a similar stance, stating that “It seems likely that we’ll be able to produce one and a half million cars this year.” However, the Tesla head also cautioned that the EV waiting list is long. As a result, some customers who place orders now may not take delivery of their cars till next year.
Furthermore, Musk also touched on Tesla’s autonomous driving plans “robotaxi,” which he said were taking longer than envisioned. In his own words:
“With respect to full-self driving, of any technology development I’ve ever been involved in, I’ve never really seen more kinds of false dawns where it seems like we’re going to break through but we don’t.”
Although he refrained from providing further insight into the “futuristic” driving experience agenda, Musk revealed an upcoming robotaxi event in 2023. He however reiterated that work on the autonomous driving project had begun, and Tesla is “aiming for volume production in 2024.”
In the past 12 months, Tesla stock gained about 36%. This favorably compares with the 8% gains of the S&P 500 index for the same period.