And I add: “The profit obtained totaled US$3,376 million, which meant a year-on-year increase of 255%. In addition, revenues continue to grow, thus reaching a compound quarterly growth rate of over 12% (taking the first quarter of 2021 as a starting point).”
Tesla has been an outlier since the outbreak of the pandemic, posting record deliveries and profits for several quarters while rivals facing global supply chain issues had to halt production.
“Unlike its auto sector counterparts, Tesla is better prepared to deal with manufacturing challenges, first brought about by the pandemic and then by the war in Ukraine,” said Haris Anwar, an analyst at Investing.com.
“Tesla defies skeptics again”, says Ben Laidler, global markets strategist at eToro. “The price increase offset cost pressure to drive better-than-expected first quarter 2022 earnings. This will refocus attention on the accelerating global transition to electric vehicles (EVs), following recent distractions by founder Elon Musk’s Twitter bid.”
“Investors’ expectations have been reduced after the company failed to meet car delivery forecasts for the quarter. Elon Musk had also warned about the rising cost of battery materials, and his largest factory – in Shanghai – has been disrupted by Covid,” he added.
“Its gross margin of 32.9% in the automotive sector is more than four times that of its global peers, and means that its total debt, adjusted for vehicle financing, is close to zero.”, highlighted the analyst.
Source: Ambito
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