Tesla 1Q earnings 7x higher than last year due to strong sales

From January to March, the electric vehicle and solar panel companies made $3.32 Billion. The Austin, Texas company earned $3.22 per share, excluding special items like stock-based compensation. According to FactSet data provider, this beat Wall Street estimates at $2.26 per Share.

The quarter's revenue was $18.76 Billion, beating estimates of $17.85 Billion. Multiple price increases were used to offset the rising cost of lithium, nickel and cobalt, as well as other precious metals that are used in making batteries, boosting it.

Tesla may have to work harder to achieve similar results later in the year. It is facing rising commodity prices and costs as it ramps up factories in Texas and Germany. It is also facing increased competition from legacy and startup automakers who are releasing more electric vehicles.

According to the company, its weekly production was good for the quarter, however, a spike of COVID-19 cases caused the temporary shut down of its Shanghai factory and a part of Tesla's supply chains.

"Although limited production at the Shanghai factory has been restarted recently, we continue to closely monitor the situation," the company stated in a letter to investors.

Tesla seems to have done a better job of addressing parts shortages than any other company in the industry.

Tesla shares closed Wednesday at $977.20 down almost 5%, but it recovered the day's losses in extended trades after the company released its numbers. The stock has fallen 7.5% so far in the year.

Elon Musk, CEO of Tesla Motors, is expected to attend Wednesday's earnings conference call. Elon Musk is expected to attend the earnings conference call later Wednesday. He could also be asked about his $43 Billion hostile bid to acquire Twitter.

Tesla has reiterated its goal of a 50% average annual growth in vehicle deliveries for the next few years, despite the difficulties with Chinese production and supply chains. The company stated that the rate of growth would depend on the equipment capacity, operational efficiency, and the stability and availability of the supply chains.

Tesla stated that although production has begun at its Texas and German plants, it will take some time for the ramp-up at both locations to be completed. Tesla stated that its factories are currently operating below capacity due to shortages of parts.

Tesla claims that it will release "Full Self Driving" beta testing software to all U.S. customers by the end the year. Tesla stated that the cars can't drive themselves, despite their name. Drivers must be attentive and ready to intervene whenever necessary.

Tesla shipped a record 310,000 vehicles globally in the first quarter. This is an increase of 68% over the same period in 2021. It shipped 185,000 vehicles during the first quarter last year.

The company delivered an unprecedented 936,000 vehicles last year, an 87% increase on the 2020 figures. In February, the company stated that it expected a 50% increase in sales each year. This means that approximately 1.4 million vehicles will be delivered in 2018.