Tesla Inc. booked first-quarter profits of $3.3 billion, more than seven times its bottom line from the first three months of 2021, as executives limited operating expense growth and more than tripled the electric car manufacturer’s operating margin to 19.2%.
Revenues at the Austin-headquartered company rose more than 80% from a year earlier to nearly $18.8 billion. Automotive revenues climbed more than 90% to $16.8 billion and gross margins on the company’s cars rose to 32.9% from 30.6% late last year and 26.5% in Q1 of 2021.
CFO Zach Kirkhorn said the first quarter was a “challenging but extremely successful” period marked by continued supply chain challenges, including the sudden closure of its (since reopened) Shanghai factory due to COVID-19 lockdowns. Kirkhorn and CEO Elon Musk said on an April 20 conference call that they are confident the company can meet its previously stated goal of growing vehicle production by 50% this year – Musk said there’s a chance that number will top 60% -- as Shanghai resumes operations and newly opened factories in Berlin and Austin build their volumes.
Musk also told analysts and investors his team expects to launch production of a robotaxi without a steering wheel or pedals in 2024 – a detailed product-focused event could happen next year – and repeated a previous assertion that it can start building its Cybertruck next year.
“I’ve never been more optimistic or excited about Tesla’s future than I am right now,” Musk said.
Tesla delivered about 310,000 vehicles in the first quarter, a small increase from Q4 and up 68% year over year. The company also added about 250 superchargers to its network, which finished March at 3,724, and grew its supercharger connector network to 33,657 from 31,498 at the end of last year.
The Tesla team is pushing through price increases in reaction to and anticipation of increases in raw materials and parts costs. In some cases, Musk pointed out, that’s needed because customers ordering their vehicles today won’t take delivery until early next year.
Other tidbits from Tesla’s call included:
• Musk said he expects the company will have some news to announce in the coming months about sourcing more of the raw materials it needs as it grows. The CEO recently thought out loud about high lithium prices maybe leading Tesla to build its own mine.
• The executives lauded their plant teams in Shanghai and Fremont, California, for their work to lower ongoing operating expenses even as they have battled parts delays and shortages. Musk cited the quote (often attributed to Gen. Omar Bradley) that “amateurs talk strategy, professionals talk logistics.”
Shares of Tesla (Ticker: TSLA) were up about 5% to roughly $1,020 after the company reported its earnings. They are up about 10% over the past six months.
