Tesla Recorded a $3.3 Billion Profit in the First Qaurter

Share Us

464
Tesla Recorded a $3.3 Billion Profit in the First Qaurter
21 Apr 2022
min read

News Synopsis

For Tesla, the first quarter of 2022 was another record in terms of sales, vehicle delivery, operating profit, and operating margin despite a supply chain hurdle and a resurgence of the COVID-19 lockdown, affecting the Shanghai factory of the carmaker.

Tesla posted a profit of $3.3 billion and its sales increased 81% year on year to $18.76 billion. This is due to increased vehicle delivery, growth in other parts of the business, and rising average selling prices.

The company sells these credits to manufacturers with a small number of zero-emission vehicles in markets where they'll be penalized for doing so, like the European Union.

The company's Berlin, Austin, and Texas plants opened only in the first quarter and are still in the early stages of launch, so it has to wait for how much production will increase in the second quarter. In the meantime, Tesla expects existing plants to continue to operate below capacity until the end of 2022 due to supply chain competition.

TWN In-Focus