“It was once again a record quarter for Elon Musk’s company, which dispelled doubts about how rising energy prices could affect its production,” commented from Cohen.
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.
“The increase in the price of its automobiles made the company stand out in terms of income, despite the current recessionary scenario. According to the company, this price increase would be enough to cover the expected rising costs for all of 2022. However, despite achieving a operating margin of more than 19%, the company indicated that there are still inconveniences regarding the supply chain and the impact of inflationary pressure,” added from Cohen.
“Tesla defies skeptics again”, said 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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