Today, after the bell, American electric vehicle giant Tesla reported its first-quarter performance. The company detailed revenues of $18.76 billion and $2.86 in earnings per share value, above Q1 2021 results in the value of net income. US$ 10.389 billion and earnings per share of 93 cents.
However, Tesla has warned of continued supply constraints that could hamper future production despite the recent openings of its Gigafactories in Berlin and Texas that will build the Model Y.
“Our own factories have been running below capacity for several quarters as the supply chain has become the main limiting factor, which will likely continue through the rest of 2022,” the automaker said in its financial outlook.
Tesla reported net income of $3.32 billion, up 658% from the $438 million recorded in the same period last year. The company’s profit result stands out as it is by far the company’s highest in recent history, rising about $1 billion above its fourth-quarter 2021 net income results.
The numbers beat analysts’ expectations in terms of revenue and net income. According to Yahoo Finance data, analysts had expected Tesla to generate Q1 2022 revenue of $17.8 billion and $2.26 in earnings per share.
The company’s shares are up about 4% in after-hours trading after losing nearly 5% of their value during regular trading.
The company’s quarter is hard to criticize. Tesla’s revenues increased 81% on an annual basis, a number surpassed by the 87% growth in automotive revenues over a similar period. Even more, the company’s operating expenses increased by just 15% over last year’s quarter, giving the EV company a big jump in its operating margin – that number rose from 5.7% in last year’s quarter to 14.7 % in the quarter. last quarter of 2021, to 19.2% in its most recent three-month period.
Again, when we dip a toe into the numbers, things look good. Tesla’s automotive gross margin also recorded what was at least a local high, rising to 32.9% from 26.5% in Q1 2021 and 30.6% in Q4 2021.
Finally, from a big numbers perspective, Tesla’s operating activities kicked off just under $4.0 billion in cash in the quarter, up 143% from the prior-year result of $1.64 billion. . Notably, Tesla generated more positive operating cash flow in the fourth quarter of 2021 than it did in early 2022, but the decline looks modest when compared to a year earlier.