Tesla has great first quarter in spite of issues

Tesla recorded US$18.76 billion revenue in its first quarter this year – up a billion more than estimates and 87% above the same period last year.

It also produced 310,048 EVs in the three months to March 31, 2022, about 95% of them Model 3s and Model Ys.

About 1.5 million EVs are expected to be produced by Tesla this year, with Giga Shanghai back operating after a prolonged COVID shutdown, and Giga Berlin and Giga Texas just starting.

Tesla estimates it will produce about 20 million EVs annually by the end of this decade – it’s already at 5% of its goal, and the company says it can grow at least 50% on 2021 numbers.

Pressures such as raw material costs, inflation, parts and semi-conductor shortages, COVID, and Russia’s war in the Ukraine are impacting Tesla with chief executive Elon Musk warning that supply chain constraints especially may continue for the rest of this year.

The company notes the mining and manufacturing of lithium may be a limiting factor too.

While its Cybertruck (production expected to start next year) and Semi truck may include 800-volt architecture, Musk points to its Optimus humanoid robot project as likely to be the big money spinner, believing it will be worth more than Tesla’s car business.

“Its importance will be apparent in coming years.”

Progress on autonomous vehicles hasn’t been as fast as initially expected, but Tesla expects its 4680 battery cell production to start around the third quarter of this year, and eventually to scale up its EV production to extreme size.

Musk also talks about Tesla’s robotaxi fleet development, saying an event launch is planned next year with volume production in 2024.

He hopes Tesla won’t have to raise its EV prices anymore although it cannot control raw materials costs.

Tesla expects its quarter three and four results to be even better, the latest announcements sending its shares soaring by 6% and more.