The net profit from selling a car was $12000, but musk said it was a "difficult season"
April 30th, 2022

abstract

Tesla Q1 delivery and profits hit a record high, but musk said that the impact of the epidemic, inflation and supply chain crisis has just begun.

The conflict between Russia and Ukraine, high inflation, chip shortage and the havoc of Omikron cannot stop Tesla from moving forward.

After trading on April 20, Tesla released the first quarter financial report of 2022. Tesla delivered a total of 310000 vehicles in this quarter, a year-on-year increase of 68%. Under the influence of both the increase in shipments and the increase in the average selling price, Tesla’s single quarter revenue increased by 81% to US $18.76 billion; The net profit attributable to the parent company under non GAAP reached US $3.74 billion, a year-on-year increase of 255%.

Revenue and profits soared. After the release of the financial report, Tesla’s share price rose by more than 6% after hours. However, after two trading days, Tesla’s stock price fluctuated and fell. At present, Tesla’s stock price is $1005, and its market value will hold the $trillion mark ($1.04 trillion).

This is also consistent with the signal sent by the financial report to the market: at first glance, there are bright eyes and hidden worries when studying carefully. In 2021, Tesla’s average quarterly delivery increased by more than 40000 vehicles, but this quarter’s delivery only increased by about 1400 vehicles compared with Q4 in 2021, and the production decreased by 430 vehicles compared with the fourth quarter. This is still under the condition that the German Berlin plant has been put into operation in March 2022.

In the next few quarters, under the influence of inflation, Shanghai epidemic and other factors, Tesla may face a more severe “guaranteed supply” situation. But two good news are: the Shanghai factory, which has been shut down for one month, has resumed production with the efforts of all parties; In addition, two new factories, Berlin super factory and Texas super factory, have also been put into production.

  1. The profit increased greatly, and the delivery volume exceeded 310000 vehicles
  2. According to the financial report, in the first quarter of 2022, Tesla’s total revenue reached US $18.8 billion, a year-on-year increase of 81%. The gross profit margin was 29.1% and the operating profit margin was 19.2%, both reaching an all-time high. GAAP net profit was US $3.3 billion, a year-on-year increase of 6.58 times; Non GAAP net profit (excluding share based payment expenses) was $3.7 billion. Year on year growth of 2.55 times.
  3. Behind the double growth of revenue and profit is the rise in prices and capacity. In addition, Tesla’s increasing productivity enables it to reduce the cost of a single vehicle (cosg) while global inflation continues.
  4. At the conference call, an analyst asked, “your profitability has been so excellent, and you have also reduced production costs through various technologies. Isn’t this enough to offset inflation and need additional price increases?”
  5. Tesla responded that the current price increase has actually taken into account the possible increase in supplier costs and logistics costs in the next 6 to 12 months. Because there is usually a time difference of about a year between reservation and delivery. In this time gap, “if the government continues to print a lot of money, and if lithium extraction and extraction and other raw materials do not increase significantly, so that everyone is competing for a limited number of raw materials, it is obvious that this will push the price to a higher level.”
  6. Although Tesla’s production costs were well controlled in this quarter, resulting in a significant increase in profits, the performance of key production capacity and delivery was not as strong as before.
  7. According to the financial report, Tesla delivered a total of 310000 vehicles in the first quarter of 2022, with a year-on-year increase of 68%, but only a month on month increase of 0.45% in the previous quarter, the smallest quarter on month increase since 2021. In addition, Tesla produced a total of 305400 cars in this quarter, even down from the previous quarter.
  8. It is worth mentioning that although the momentum has slowed down, Tesla’s performance is still unmatched by other auto companies. This year, the delivery volume of Xiaopeng cars, which shipped the most in weixiaoli in Q1, was 35000, only one tenth of that of Tesla. According to the report of truecar, the US auto e-commerce, only Tesla achieved positive year-on-year growth in the first quarter of 2022.
  9. The shutdown of Shanghai Super factory caused by the epidemic may be the direct reason for the slowdown of Tesla’s production and delivery in this quarter.
  10. According to the China Passenger Car Association, in February this year, the Shanghai factory delivered 56515 cars, with an average daily shipment of 2018. According to media reports, affected by the epidemic, Tesla Shanghai Super factory stopped production for a total of 6 days in the first quarter (March 16-march 17, March 28-March 31). According to the daily production of 2000 vehicles, it is equivalent to the loss of production capacity of 12000 vehicles.
  11. To make matters worse, as Shanghai continued to be blocked in April, the Shanghai Super factory has been shut down for 2-3 weeks, which will cause Tesla to lose tens of thousands of production capacity in the second quarter.
  12. But the good news is that with the efforts of many parties, Shanghai Tesla factory has begun to resume production. According to musk, the Shanghai Super factory has “returned from Revenge” and will see a new record of weekly production in the second quarter. The production of Q3 will be basically the same as that of Q3, but it will not increase for a few weeks.
  13. In this regard, musk thanked the Tesla Shanghai team and suppliers for their efforts, saying that they “still produce high-quality products in the face of very serious challenges such as the closure of the epidemic”.
  14. In addition, there is good news for musk: the long delayed Berlin super factory started production in late March, and the Texas super factory also went into operation in April. Although their production capacity in Q1 is only a drop in the bucket for Tesla due to the short time, they at least see the hope of solving the production capacity problem.
  15. Berlin super factory - delivery of the first model y
  16. 02 why raise the price when the production cost is reduced?
  17. Since the second half of last year, the supply chain of the global automobile manufacturing industry has been under great pressure. Inflation
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