Tesla Posts 10th Straight Quarterly Profit, Again Beating Analyst Expectations

published: 2022-04-21 16:48 | editor: | category: News

Tesla released its 1Q22 earnings report today, which once again exceeded analysts' expectations and delivered positive profit results for the tenth consecutive quarter.

Tesla’s 1Q22 earnings report once again thwarted analyst forecasts. Revenue for the quarter was US$1.8 trillion, beating estimates of US$1.7 trillion, with EPS of US$3.22, also well ahead of estimates ranging from US$2.26 to US$2.54.

Before the earnings report, Tesla had already announced the number of vehicles delivered this quarter, a total of 310,048 electric vehicles which, not only exceeded expectations, but also exceeded the number of vehicles delivered in the previous quarter, setting a record high, and naturally financial report also followed suit. .

"The first quarter of 2022 was record breaking in many aspects, including revenue, vehicle deliveries, and profits. Our operating profit margin was also over 19%, and our debt level was less than $100 million," a Tesla official stated. Volkswagen's expectations for a sustainable future continue to rise and Tesla has grown rapidly within a reasonable range.


▲Tesla 2022 Q1 Earnings Report

Looking forward to Q2, Tesla believes that they will retain a great advantage in vehicle costs, the number of vehicles delivered, and the sales of vehicles subsidized by governments in various countries but its main challenge will be the increase in raw materials, logistics, and transportation costs. There are operating expenses that they expect will increase.

At the end of the quarter, Tesla had US$18 billion in cash on hand, little changed from the previous quarter, mainly due to an increase in cash flow of $2.2 billion, while also paying down about $2.1 billion in debt.

In addition to vehicle performance and artificial intelligence, Tesla's core advantages are charging facilities that are irresistible to car owners. According to official data, the number of Tesla's global supercharging stations has grown to 3,724 this quarter, an increase of 38% over the same period last year, and the number of charging guns available for supercharging has also increased by 37%, with a total of 33,657 charging piles.

Since two new factories are online this year, Tesla has also released the estimated production capacity of each factory. Tesla’s California factory is at 600,000 and its Shanghai factory is at 450,000, while the Berlin and Texas factories are only listed as being at an initial development stage with no specific figures as of yet. It is worth mentioning that the official statement explained that the Berlin plant will have the ability to produce two Model Ys at the same time, one being the existing 2170 non-structural battery and the 4680 structural battery that will debut this year.

The lithium iron phosphate battery (LFP Battery) we have reported on before is currently used by more than half of Tesla's vehicles. Without using cobalt and nickel, most of the standard battery life models are using LFP batteries as vehicle cruising range can still be maintained at about 420 kilometers.

Tesla's main job this year is to get the Berlin and Texas factories on track. The introduction of more new machines and production methods at these two factories can improve efficiency but it still takes time to run smoothly.

The Cybertruck, which many people are concerned about, has been officially announced for the production line after the Texas factory has successfully mass-produce the Model Y.

(Image: Tesla)

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