Tesla defies supply woes and boosts sales
(Update: A previous version of the article stated that Tesla had advertised at this year’s Super Bowl. This turned out to be incorrect)
Across almost the entire globe, customers face long waits when ordering an electric vehicle from Tesla. This is partly due to supply chain issues and a lack of microchips.
Nevertheless, people continue to place orders, and Tesla is earning more for each car sold than previously.
This much is clear from the EV maker’s first-quarter results.
Tesla booked revenue of USD 18.8bn, which is quite a lot higher than market estimates of USD 17.9bn.
Profits from the EVs have furthermore risen by more than 60 percent with Tesla earning USD 16,203 per vehicle.
Although customers are eagerly placing orders, and Tesla generates profits from the cars, the cars are slow to actually roll out of the production halls.
Due to the Covid-19 pandemic, the company’s factories have been turning out cars at a lower pace than previously, the company writes in a company announcement.
”Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022,” writes Tesla.
Aside from this, a new outbreak in China forced Tesla to shut down operations at a factory for several weeks. It has only recently reopened.
”Although limited production has recently restarted, we continue to monitor the situation closely,” writes Tesla.
The New York Stock Exchange has also reacted positively to Tesla’s first-quarter results. Tesla stock traded 4 percent higher at closing Wednesday.
According to Roth Capital analyst Craig Irwin, Tesla has managed to get a handle on the production challenges in China in a proper fashion and at the same time compensated for the lack of cars by opening factories elsewhere.
”Chinese production issues seem well managed, and we expect Austin and Berlin to make up the slack from Shanghai’s 19-day outage,” he says.
Tesla recalls nearly 128,000 cars in China
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