Facing the resistance brought by the Russian-Ukrainian war and the epidemic in China, Tesla (TSLA-US) on Wednesday (20th) still announced its dazzling first-quarter financial report. Driven by the price increase of electric vehicles and sales growth, revenue increased by more than 80% compared with the same period last year, and profit and gross profit margin of automobiles both hit record highs, stimulating after-hours stock prices It rose more than 5%.
After the earnings report, Tesla rose 5.5 percent to $1,030.60 a share in after-hours trading on Wednesday. The stock has fallen more than 18% so far this year.
The Russian-Ukrainian war has put Tesla under huge inflationary pressure on raw materials and logistics, forcing the company to repeatedly increase its prices in China, the United States and other regions, allowing Tesla to withstand cost pressures.
In addition to electric vehicle sales, regulated credits sold to other automakers also contributed $679 million in revenue to Tesla last quarter, up 31 percent from a year earlier.
Q1 (as of March 31) financial report key data
- Revenue: $18.76 billion, up 81% year over year (FactSet analysts expect $17.8 billion)
- (Non-GAAP) Net Income: $3.74 billion, up 255% year over year
- (GAAP) Net Income: $3.32 billion, a new high, up 658% year over year
- (Non-GAAP) EPS: $3.22 (FactSet analysts expect $2.26)
- Gross profit margin: 29.1%, compared to 21.3% in the same period last year
- Adjusted EBITDA: $5.02 billion, up 173% year over year
- Free cash flow: $2.23 billion, up 660% year over year
Tesla announced at the beginning of the month that it delivered 310,000 vehicles in Q1, an annual increase of 68%. Model 3 and Model Y accounted for 95% of the total delivery volume, reaching 295,000.
Looking at the business performance, Tesla’s Q1 auto business revenue was US$16.86 billion, an annual increase of 87%, and the auto gross profit margin rose from 26.5% in last year’s Q1 to 32.9%, a record high.
However, Tesla’s Q1 solar roof deployment was nearly halved from a year earlier to just 48 megawatts, down from 85 megawatts in the previous quarter, as logistics and trade restrictions affected the delivery of some parts.
The impact of the shutdown of the Shanghai factory
Subject to the closure and control measures in Shanghai, Tesla’s Shanghai factory was forced to close at the end of March. Although it has resumed gradual production this week, the situation is still unstable because it still needs Chinese parts suppliers to operate in order to continue production operations.
Even if the shutdown of the epidemic causes the Shanghai plant to lose about a month of construction capacity, Tesla Chief Financial Officer Zachary Kirkhorn and Chief Executive Elon Musk said the company is working to return to full production and is still on track to achieve an average annual increase of 50% in vehicle deliveries The goal.
Musk said 1.5 million electric vehicles are still expected to be produced this year, representing a 60% increase from last year, despite the slowdown in production, but also said that the current pre-order waiting list is very long, and even if customers place orders now, it may be Have to wait until next year to arrive.
The new crown epidemic and the Russian-Ukrainian war have exacerbated inflationary pressures. With the shortage of key components such as chips, Tesla’s Q1 global market has an average inventory of only 3 days, a further decline from 4 days in the previous quarter, and far lower than last year. 8 days in the same period.
Tesla also admitted that due to supply chain constraints, its factories have been undercapacity for several consecutive quarters, and this situation is likely to continue by the end of this year.
Advances in Autonomous Driving
Musk admitted that developing autonomous driving took longer than he originally expected.
“As far as fully autonomous driving is concerned, in all the technology development I’ve been involved in, I’ve never had this kind of euphoria, where it looks like a breakthrough, but it doesn’t,” he said.
Musk declined to give details about the Robotaxi, saying only that a self-driving taxi without a steering wheel and pedals is currently being developed, with the goal of mass production in 2024.