Tesla said first-quarter net profit and revenue skyrocketed after the EV maker shipped record units at higher prices.
The company carried out Elon Musk reported net income of $3.32 billion for the quarter compared to a profit of $438 million a year ago. Revenue for the first quarter ended March 31 was $18.8 billion compared to $10.39 billion a year earlier.
Earnings per share and revenue beat Wall Street expectations. Tesla reported earnings per share of $2.86, while analysts had expected $2.26.
Tesla has been an outlier since the pandemic broke, posting record deliveries and profits for several quarters as rivals grappling with the snarl of the global supply chain instituted production halts.
The company’s two new factories in Texas and Berlin are ramping up production, and Musk delivered Tesla’s first Texas-made Model Y vehicles earlier this month. The company started deliveries in Berlin in March.
Tesla has raised prices in response to inflation, offsetting the impact of a Shanghai plant closure
“Price increases significantly exceed cost inflation,” said Craig Irwin of Roth Capital. “Chinese production issues appear to be well managed and we expect Austin and Berlin to close the gap with Shanghai 19 days Failure.”
Tesla raised prices in China, the US and elsewhere after Musk said in March that the automaker was facing significant inflationary pressures in commodities and logistics amid the crisis in Ukraine.
“Our own factories have been running below capacity for several quarters as the supply chain became the main constraining factor, which is likely to continue through the end of 2022,” Tesla said in a statement.
Tesla said chip shortages and the recent COVID-19 outbreaks have weighed on its supply chain and factory operations, while the prices of some commodities have surged multiples in recent months.
Sales of its regulatory loans to other automakers rose 31 percent year over year to $679 million in the quarter, which helped boost sales and profits.
Tesla closed its Shanghai factory amid a COVID outbreak for about three Weeks before production gradually resumes this week. “Although limited production has recently resumed, we continue to monitor the situation closely,” Tesla said on Wednesday.
Musk offered to buy Twitter last week, raising concerns he might be distracted by the automaker as it ramps up production at its new plants. The Berlin and Texas facility will be key to meeting demand and reducing dependency on its Shanghai facility, its largest assembly location.
There are concerns that Musk could sell some Tesla stock or borrow additional Tesla stock to fund his $43 billion bid to buy Twitter.