The Prague Post - Tesla reports record profits, bullish on 2022 output

EUR -
AED 4.261576
AFN 81.366302
ALL 97.993721
AMD 442.70133
ANG 2.076683
AOA 1064.089619
ARS 1359.405934
AUD 1.787132
AWG 2.091626
AZN 1.969937
BAM 1.956681
BBD 2.315433
BDT 140.25318
BGN 1.956857
BHD 0.437848
BIF 3415.123688
BMD 1.160403
BND 1.483162
BOB 7.952617
BRL 6.377228
BSD 1.146812
BTN 99.472381
BWP 15.507919
BYN 3.752842
BYR 22743.893394
BZD 2.303528
CAD 1.592096
CDF 3338.478806
CHF 0.942079
CLF 0.028678
CLP 1100.514617
CNY 8.331116
CNH 8.325814
COP 4739.084726
CRC 579.358486
CUC 1.160403
CUP 30.750672
CVE 110.315169
CZK 24.817883
DJF 204.211111
DKK 7.459707
DOP 68.110388
DZD 151.008771
EGP 58.800045
ERN 17.406041
ETB 154.440305
FJD 2.611835
FKP 0.86158
GBP 0.855751
GEL 3.15614
GGP 0.86158
GHS 11.811372
GIP 0.86158
GMD 82.957489
GNF 9935.432783
GTQ 8.823013
GYD 239.91911
HKD 9.109098
HNL 29.950363
HRK 7.534843
HTG 150.50872
HUF 402.845612
IDR 19003.045112
ILS 4.02611
IMP 0.86158
INR 99.955756
IQD 1502.270252
IRR 48881.965111
ISK 142.416091
JEP 0.86158
JMD 182.801559
JOD 0.822737
JPY 168.773577
KES 150.272318
KGS 101.434977
KHR 4596.793412
KMF 496.074564
KPW 1044.361993
KRW 1585.348032
KWD 0.354817
KYD 0.955626
KZT 598.967235
LAK 24739.037546
LBP 102748.95692
LKR 345.063953
LRD 229.352328
LSL 20.783073
LTL 3.426367
LVL 0.701916
LYD 6.244786
MAD 10.505077
MDL 19.70179
MGA 5098.274641
MKD 61.561405
MMK 2436.570069
MNT 4157.8323
MOP 9.272637
MRU 45.335227
MUR 53.100631
MVR 17.875971
MWK 1988.487182
MXN 22.120058
MYR 4.937566
MZN 74.219632
NAD 20.783073
NGN 1797.487311
NIO 42.198827
NOK 11.662343
NPR 159.156009
NZD 1.930672
OMR 0.446181
PAB 1.146722
PEN 4.129478
PGK 4.725108
PHP 66.032135
PKR 325.393577
PLN 4.273882
PYG 9153.083731
QAR 4.193607
RON 5.048802
RSD 117.252911
RUB 91.09669
RWF 1655.938812
SAR 4.354005
SBD 9.678256
SCR 16.56449
SDG 696.824819
SEK 11.110975
SGD 1.487723
SHP 0.911894
SLE 26.050531
SLL 24333.069177
SOS 655.392409
SRD 45.071168
STD 24017.993547
SVC 10.034477
SYP 15087.415911
SZL 20.77727
THB 38.013591
TJS 11.324252
TMT 4.06141
TND 3.400747
TOP 2.71778
TRY 46.034684
TTD 7.793477
TWD 34.290477
TZS 3127.285654
UAH 48.057941
UGX 4137.881813
USD 1.160403
UYU 46.880512
UZS 14331.517641
VES 120.225636
VND 30373.541306
VUV 139.140207
WST 3.201098
XAF 656.249792
XAG 0.032056
XAU 0.000346
XCD 3.136046
XDR 0.816164
XOF 656.249792
XPF 119.331742
YER 281.571546
ZAR 20.661315
ZMK 10445.010328
ZMW 26.644888
ZWL 373.649204
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Tesla reports record profits, bullish on 2022 output
Tesla reports record profits, bullish on 2022 output / Photo: Patrick Pleul - POOL/AFP/File

Tesla reports record profits, bullish on 2022 output

Tesla reported another banner quarter of profit growth Wednesday on pricier vehicles and said its 2022 output plan was on track despite ongoing supply chain problems and a hit from recent Covid-19 lockdown measures in China.

Text size:

Elon Musk's high-flying electric vehicle company notched a new record in quarterly profits of $3.3 billion following the unveiling of new factories in Germany and the US state of Texas that have begun commercial deliveries.

Headwinds facing the company include increasing raw material costs, as well as a weeks-long outage at the Shanghai plant following the Chinese government's latest Covid-19 restrictions.

"Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022," Tesla said in its earnings press release.

Still Musk said it "seems likely" the company will produce more than one and a half million vehicles in 2022, which would be above the company's long-term target of at least 50 percent output growth.

"We are growing very rapidly year over year and remain confident of exceeding 50 percent growth fore forseeable future," Musk said on a conference call with investors and analysts. "The future is very exciting."

But the Model 3 Tesla currently lists for a starting price of $42,690, putting it beyond reach for many households.

Musk, who has long spoken of the need to make electric vehicles affordable for the masses to combat climate change, insisted "we absolutely want to make EVs as affordable as possible."

"It's been very difficult when inflation is at a 40-or 50-year high" said Musk, who noted how suppliers have sought 20 to 30 percent price increases for parts.

- Struggle for affordability -

For the latest quarter, Tesla reported profits of $3.3 billion, up 658 percent from the year-ago period on an 81 percent jump in revenues to $18.8 billion.

The company produced 305,407 autos in the period, slightly below the level in the prior quarter, but enough to push output above one million over the last 12 months.

Chief Financial Officer Zach Kirkhorn said Tesla's Shanghai plant "lost about a month of built volume" due to the lockdown, but that manufacturing "is resuming at limited levels working to get back to full production as quickly as possible."

Kirkhorn said cost inflation on raw materials had accelerated during the first quarter, and second-quarter costs are trending "slightly higher" than that.

As supply chain problems have persisted, auto analysts have cautioned that the EV build-out could be constrained by limited raw materials.

ISeeCars analyst Karl Brauer cited rising costs for lithium, palladium and nickel as a challenge for Tesla and the auto industry more generally.

"Cost and supply concerns around various battery components isn't going away, and will likely grow as global EV production and demand grows," Brauer said.

"Electric vehicles have always struggled to be as cost effective as internal combustion cars. And there's every indication that struggle will continue."

Musk acknowledged some of these challenges for EVs, calling for entrepreneurs to focus on building lithium supply.

"Can more people please get into the lithium business?" Musk quipped. "Do you like minting money? The lithium business is for you!"

The results are the latest in a series of strong earnings that has brought glory to Musk, who has most recently launched an unsolicited bid to acquire Twitter.

The social media platform is fighting the effort, unveiling a "poison pill" plan that would make it harder for the billionaire to get a controlling stake. The matter did not come up during the Tesla conference call.

Tesla shares rose 5.0 percent to $1,026.99 in after-hours trading.

N.Simek--TPP