New York: Tesla On Wednesday it reported another banner quarter of profit growth as a rapid expansion of electric vehicle (EV) manufacturing capacity boosted sales despite supply chain problems.
ELON muskThe U.S. high-flying EV company reported first-quarter profit of $3.3 billion, up 658 percent from the year-ago period, with revenue up 81 percent to $18.8 billion.
Strong profits came after two new factories were unveiled during the quarter in Germany and the US state TexasThat positive development was somewhat offset by the temporary closure of its China factory due to Covid-19.
Tesla also cited higher retail prices due to increased production costs due to semiconductor shortages and difficulties in obtaining other key supplies.
“The prices of some raw materials have increased manifold in recent months,” Tesla said. “Despite our continued focus on reducing our manufacturing costs where possible, the inflationary impact on our cost structure has contributed to adjustments in our product pricing.”
The results are the latest in a series of strong earnings that have brought glory to Musk, who recently launched an unsolicited bid to acquire Twitter.
Analysts’ focus has been the impact of the Kovid-19 lockdown on Tesla’s Shanghai plant.
Without quantifying the impact on vehicle production, Tesla said, “Although limited production has recently resumed, we continue to monitor the situation closely.”
The company maintained its multi-year target of achieving an average annual growth rate of 50 per cent in deliveries, citing existing market constraints.
“Our own factories have been running below capacity for several quarters as the supply chain has become the main limiting factor, which is likely to continue through the rest of 2022,” Tesla said.
The stock rose 4.1 percent to $1,017.02.
ELON muskThe U.S. high-flying EV company reported first-quarter profit of $3.3 billion, up 658 percent from the year-ago period, with revenue up 81 percent to $18.8 billion.
Strong profits came after two new factories were unveiled during the quarter in Germany and the US state TexasThat positive development was somewhat offset by the temporary closure of its China factory due to Covid-19.
Tesla also cited higher retail prices due to increased production costs due to semiconductor shortages and difficulties in obtaining other key supplies.
“The prices of some raw materials have increased manifold in recent months,” Tesla said. “Despite our continued focus on reducing our manufacturing costs where possible, the inflationary impact on our cost structure has contributed to adjustments in our product pricing.”
The results are the latest in a series of strong earnings that have brought glory to Musk, who recently launched an unsolicited bid to acquire Twitter.
Analysts’ focus has been the impact of the Kovid-19 lockdown on Tesla’s Shanghai plant.
Without quantifying the impact on vehicle production, Tesla said, “Although limited production has recently resumed, we continue to monitor the situation closely.”
The company maintained its multi-year target of achieving an average annual growth rate of 50 per cent in deliveries, citing existing market constraints.
“Our own factories have been running below capacity for several quarters as the supply chain has become the main limiting factor, which is likely to continue through the rest of 2022,” Tesla said.
The stock rose 4.1 percent to $1,017.02.