Tesla’s (TSLA) stock rose 7% in after hours trading after the electric vehicle maker reported
first-quarter earnings that beat analysts’ expectations on the top and bottom lines.
The company’s earnings per share (EPS) came in at $3.22 U.S. compared to $2.26 U.S.
expected by analysts. Total revenue amounted to $18.76 billion U.S. versus $17.80 billion U.S.
expected by Wall Street.
Tesla said its automotive revenue reached $16.86 billion U.S., up 87% from the same period
last year. Its automotive gross margins jumped to a record 32.9% with Tesla reporting gross
profit of $5.54 billion U.S. in its main segment. Regulatory credits accounted for $679 million of
automotive revenue for the first quarter.
Revenue growth was driven in part by an increase in the number of cars Tesla delivered, and an
increase in average sales prices, the company said in a news release.
Early this month, Tesla reported vehicle deliveries of 310,048 for the first quarter. Model 3 and
Model Y vehicles comprised 95%, or 295,324, of deliveries in the period ending March 31.
On the company’s earnings call, CFO Zachary Kirkhorn and CEO Elon Musk said that Tesla
remains confident that it can grow at least 50% over 2021 numbers. However, the execs noted
that the company has lost about a month of “build volume” in Shanghai due to COVID-19
shutdowns.
In its energy segment, Tesla’s solar deployments dropped by nearly half to 48 MW in the first
quarter versus the same period last year. The company deployed 846 MWh of lithium-ion
battery energy storage systems, up 90% from the same time last year, but down from the
previous quarter.
The company said declines in solar deployments were caused by import delays on certain
components that were beyond Tesla’s control.
Amid inflationary pressures, parts and semiconductor chip shortages exacerbated by the
pandemic, and Russia’s invasion of Ukraine, Tesla global vehicle inventory dwindled to a three-
day supply in the first quarter. That’s down from a four-day supply of global vehicle inventory in
the previous quarter, and an eight-day supply during the first quarter of 2021.