Tesla reported its earnings for the first quarter of 2022, and as usual, Tesla beat the expectations of several analysts. Tesla’s automotive revenue reached $16.86 billion, which is up 87% from this time last year. Tesla also said that its growth was impacted by growth in vehicle deliveries, the increased average selling price (ASP), and growth in other parts of its business.
“Our operating income improved to $3.6B in Q1, resulting in a 19.2% operating margin. This profit level was reached while incurring SBC expense attributable to the 2018 CEO award of $48M in Q1.”
Tesla added that its operating income was primarily impacted by several factors, such as the previously mentioned ones along with the increase in operating expenses, rising costs in raw materials and commodities and logistics, and its lower stock-based compensation expense. Tesla also mentioned a reduced cost per vehicle despite inflationary pressures.
Tesla is still growing its manufacturing capacity and has recently opened two new factories — one in Germany and one in Texas. The company shared the following about its outlook:
“We plan to grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain. 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.”
Tesla added that it has sufficient liquidity to fund its product roadmap, long-term capacity expansion plans, as well as other expenses. Tesla expects an acceleration of its software-related profits to accompany its hardware-related profits while reducing the cost of manufacturing and operations over time. This, it noted, is happening as it continues innovating.
Tesla said that the pace of production ramps in Austin and Berlin will be influenced by the successful introduction of its new products as well as manufacturing technologies and ongoing supply chain–related challenges.
To read Tesla’s full Q1 2022 earnings report, click here.
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