EV manufacturer, Tesla has reported a $3.3 billion profit in the first quarter of 2022, with the company announcing that the profit was turned on just over $18.7 billion in revenue, representing a 81 percent increase year over year, as compared to the $10.4 billion it has in revenue in the first quarter of 2021.
Despite the supply chain issues and delays in production in China, Tesla logged $679 million in emission credit sales to other automakers, in comparison to the $314 million it had in credit sales in the fourth quarter of 2021, with the company generating the revenue through the sale of these credits to automakers that make fewer “clean” vehicles more than the requirements of the US government and the EU.
Tesla’s credit sales has in the past years proven to be useful, as it helped the company reel out profits despite struggling with its car-making business. Tesla had last summer announced that for the first time, its manufacturing and energy sales business was eking out profits, even without counting emission credit sales.
2022 is proving to be a pivotal and noteworthy year for the Electric Vehicle company as it opened two new factories between March and April this year, with the Conoravirus pandemic forcing it to shutter its Shanghai factory for many weeks. Tesla’s fourth Gigafactory and its first in Europe was opened in Berlin March 22, 2022, and less than a month after that (April 8 , 2022), it opened its Austin, Texas-based Gigafactory, to push the production of its electric Cybertruck.
It was expected that the high costs the company incurred in opening these two giant factories, even in the face its struggles in keeping its Chinese factory in operation, will weigh down its numbers this quarter, but it appears Tesla is adequately prepared for this as it is waxing strong.
Tesla says it began production in Berlin last month, while announcing that Model Y deliveries from Texas started this month. The Elon Musk’s company also said it will produce its structural battery packs with 4680 cells in Texas later in the year, together with the standard packs of 2170 cells.
The earnings report is coming on the heels of a robust quarter for delivery and production for Tesla, with the company saying it had sent 310,048 vehicles to its customers in Q1 2022. CEO Elon Musk had on Twitter described the feat as “exceptionally difficult,” citing global supply chain issues and the closure of the company’s factory in Shanghai amid rising COVID case numbers. Musk also forecasted the earnings call that the company would be able to ramp up production and make 1.5 million cars this year.
This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy.
Outstanding work by Tesla team & key suppliers saved the day.
— Elon Musk (@elonmusk) April 2, 2022
The EV manufacturer said it delivered 295,324 Model 3 and Model Y vehicles, while 14,724 were for the Model S and X, with deliveries slightly increasing from the 308,600 deliveries it had the previous quarter’s, as it outpaced the 184,800 shipments it made in the first quarter of 2021, representing a 68 percent year-over-year increase. Tesla also announced that it had built a total of 305,407 vehicles during the past three months, shuffling up the production side of things.