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

EUR -
AED 4.339901
AFN 82.97291
ALL 97.977767
AMD 454.421545
ANG 2.114593
AOA 1083.514144
ARS 1423.268618
AUD 1.793979
AWG 2.126855
AZN 2.004379
BAM 1.956812
BBD 2.386134
BDT 145.035005
BGN 1.956116
BHD 0.445476
BIF 3520.220489
BMD 1.181586
BND 1.501677
BOB 8.165705
BRL 6.408094
BSD 1.181811
BTN 101.016241
BWP 15.631621
BYN 3.8675
BYR 23159.08677
BZD 2.373677
CAD 1.608292
CDF 3404.149244
CHF 0.932156
CLF 0.028694
CLP 1101.11779
CNY 8.465003
CNH 8.458006
COP 4829.591229
CRC 596.508486
CUC 1.181586
CUP 31.312031
CVE 110.322053
CZK 24.677416
DJF 210.442597
DKK 7.460452
DOP 70.266338
DZD 152.801294
EGP 58.443729
ERN 17.723791
ETB 162.823369
FJD 2.635823
FKP 0.861135
GBP 0.858871
GEL 3.213878
GGP 0.861135
GHS 12.230549
GIP 0.861135
GMD 84.475209
GNF 10244.29786
GTQ 9.0877
GYD 247.140489
HKD 9.27548
HNL 30.883972
HRK 7.534993
HTG 154.990153
HUF 399.159882
IDR 19146.125115
ILS 3.982583
IMP 0.861135
INR 101.075885
IQD 1548.100603
IRR 49774.312762
ISK 142.19213
JEP 0.861135
JMD 189.80816
JOD 0.83779
JPY 168.693269
KES 152.743498
KGS 103.329173
KHR 4741.150956
KMF 495.084288
KPW 1063.52653
KRW 1598.898531
KWD 0.360479
KYD 0.98478
KZT 613.507277
LAK 25476.558156
LBP 105880.235544
LKR 354.603384
LRD 236.935513
LSL 20.776244
LTL 3.488917
LVL 0.714729
LYD 6.373296
MAD 10.606485
MDL 19.841673
MGA 5152.337503
MKD 61.535471
MMK 2480.415302
MNT 4234.949916
MOP 9.555258
MRU 46.904257
MUR 52.994174
MVR 18.182035
MWK 2049.098999
MXN 22.071767
MYR 4.959707
MZN 75.574784
NAD 20.776244
NGN 1813.77009
NIO 43.492492
NOK 11.847055
NPR 161.625585
NZD 1.932891
OMR 0.454311
PAB 1.181736
PEN 4.186465
PGK 4.87352
PHP 66.555143
PKR 335.328316
PLN 4.244431
PYG 9426.875128
QAR 4.296822
RON 5.073672
RSD 117.140119
RUB 92.69703
RWF 1697.627646
SAR 4.431254
SBD 9.850794
SCR 17.072049
SDG 709.541629
SEK 11.15764
SGD 1.501561
SHP 0.928541
SLE 26.52695
SLL 24777.273209
SOS 675.306372
SRD 44.025308
STD 24456.445823
SVC 10.340348
SYP 15362.938479
SZL 20.768741
THB 38.279252
TJS 11.669689
TMT 4.147367
TND 3.439379
TOP 2.767394
TRY 47.095425
TTD 7.99817
TWD 34.474004
TZS 3098.23911
UAH 49.451874
UGX 4248.196964
USD 1.181586
UYU 47.214417
UZS 15002.758708
VES 127.674941
VND 30874.84374
VUV 141.232975
WST 3.241675
XAF 656.254728
XAG 0.032458
XAU 0.000353
XCD 3.193295
XDR 0.822602
XOF 656.296405
XPF 119.331742
YER 286.239065
ZAR 20.773571
ZMK 10635.68957
ZMW 28.2128
ZWL 380.470229
  • 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