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Tesla reports $3.3 billion in profit for Q1 2022 on $10.4 billion revenue

Tesla has released its numbers for the first quarter of 2022, and they are impressive. The EV maker earned a $3.3 billion profit in the first three months of the year.

The profit came off of just over $18.7 billion in revenue. This was an 81 percent increase over the same period last year when it pulled in $10.4 billion.

As usual, Tesla earned a substantial amount from selling emission credits to other carmakers. The lucrative side business brought in $679 million. Tesla’s competitors need the credits to make cars that are “not clean” in the US and Europe. Obviously, Tesla would have performed well without the credit sales last quarter, but they had been the company’s saving grace during quarters where it didn’t break even. In fact, last year was the first time the company recorded profits separately from selling carbon emission credits.

Tesla had already released it shipped 310,048 cars in the first quarter, setting a record. It was slightly more than the previous quarter but 68 percent better than the same period in 2021 when it shipped 184,800 units. The company actually made 305,407 cars in the last quarter.

Tesla had a memorable first quarter of the year. It finally opened Giga Berlin officially and commenced production of the Model Y. Later this year, Tesla will start producing batteries at the new plant. It will manufacture both the 4680 and 2170 battery cells. The former will be part of the structure of the car.

CEO Elon Musk described the first quarter as challenging and exceptionally difficult as it continues to battle supply chain issues. However, it is not the only car manufacturing facing the challenge.

Tesla also had to shut down Giga Shanghai due to a lockdown occasioned by a resurgence of the Coronavirus cases in the city. The plant is vital to Tesla’s global operations because it ships cars to many parts of the world from the sprawling facility.

Musk says Tesla is on track to produce 1.5 million cars this year despite all the issues. With two new plants coming online within one month, the target may not be over-optimistic.

The two cheapest cars on Tesla’s lineup continue to be the most popular. Model 3 and Model Y accounted for 295,324 shipments during the quarter. The remaining 14,725 consisted of the Model X and Model S.

Tesla also increased its profit per car, jumping from 26.5 percent in Q1 2021 to 32.9 percent in Q1 2022. In effect, Tesla increased both its margin and the number of deliveries.

Meanwhile, Tesla has fared better than its rival with supply chain issues. For example, while some carmakers had to stop the production of some models due to a lack of chips, Tesla was able to rewrite its software to work on different kinds of chips, which reduced the pressure.

Apart from production, Tesla had been busy in the courts in the first quarter. It was sued by California’s civil rights agency when some employees alleged they were racially discriminated against and harassed without Tesla taking steps to protect them. A former employee also won a massive $137 million judgment against Tesla after reporting a hostile working environment that subjected him to racial slurs and made him lose weight and sleep. However, a judge has reduced the amount awarded to a still impressive $15 million.

While not directly related to Tesla, other distractions include the CEO trying to buy Twitter completely.

Written by HackerVibes

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