Tesla Inc. reported its most profitable quarter in company history fueled by record deliveries in 2022’s first quarter, despite ongoing supply chain challenges and slowed production in China.
In a shareholder meeting, the company announced it earned a best-ever $2.86 per share, up from $0.39 a year ago. Net income was $3.3 billion, up nearly seven-fold from a year ago, on revenue of $18.8 billion, which jumped 81 per cent. Profitability in the quarter was helped by Tesla’s lucrative sales of $679 million of pollution credits to other automakers, “a source of free money it’s enjoyed for a decade”, says Forbes.
Tesla delivered 310,048 vehicles to customers worldwide, the highest volume to date, though a three-week shutdown of production at its Shanghai plant may have cost the company up to 50,000 units worth more than $2 billion. Also affecting the near-term outlook for the company are ongoing restrictions in China, supply-chain disruptions, particularly a shortage of semiconductors, and rising prices for the raw materials that go into the batteries.
“Despite numerous supply interruptions, including shutdowns in our Shanghai factory and nearby suppliers due to COVID, we’ve continued making progress and achieved our best-ever vehicle deliveries,” Tesla CFO Zack Kirkhorn said in a conference call. “We continue to drive towards further strengthening of our financials in the second half of the year and believe our 50% or above growth rate remains achievable for the year.”