Tesla significantly exceeded analysts’ expectations for sales and earnings in the first quarter of 2022. On Wednesday following the US market close, the company reported adjusted earnings per share of $3.22, nearly $1 more than media forecasts. Sales rose to $18.8 billion, almost $1 billion more than expected. Both are also the highest values that Tesla has ever achieved in a quarter.
Higher prices and quantities at Tesla
Compared to the first quarter of 2021, Tesla sales increased by 81 percent, according to the quarterly report. The previous high was $ 17.7 billion in the last quarter of 2021. A Analysts had expected Tesla to set a new sales record, but not to this extent. In terms of adjusted earnings per share, on average they even expected a slight decline from the $2.54 in Q4 2021.
In absolute terms, Tesla’s operating profit increased to $3.6 billion in the first quarter of 2022, a multiple of the previous year’s figure and regarding a billion dollars more than in the previous quarter. After the Company information higher deliveries at higher average prices and growth in other areas contributed to the sales increase. The gross margin in the auto business rose to 32.9 percent.
According to Tesla, the higher quantities and prices, less share remuneration and more income from the sale of CO2 credits had a positive effect here. This was offset by rising costs for materials, raw materials and logistics. Carbon credit revenue was $679 million in Q1 2022, up significantly for the first time since early 2021. On the downside, Tesla once more posted a charge on CEO Elon Musk’s stock option program, albeit a relatively modest one at $48 million.
CEO Musk announced for conference
Cash balance at the end of Q1 2022 was $17.5 billion. That’s regarding $200 million down from the end of 2021 — but Tesla now had $2.2 billion in free cash flow and was paying down $2.1 billion in debt.
In a first reaction to the business figures, Tesla shares just regarding made up for the loss they had previously recorded in regular trading with a plus of 4 percent to just over $ 1,000. In the outlook in its report, the company only reiterated its goal of increasing vehicle deliveries by an average of 50 percent over an extended period of time.
More information regarding the current situation with Corona restrictions at Tesla in China and the ramp-up of two new factories might be discussed in a teleconference on Tesla’s financials, scheduled for 11:30 p.m. German time. When asked regarding it, CEO Elon Musk announced ahead of the release that he would be attending. At the conference in July 2021, he declared that he would only want to do anything in the future if he had something really important to say.
