Tesla stock pops on record quarter, 81% annual revenue jump

Tesla delivered a total of 310,048 vehicles during the quarter

Tesla stock traded 7% higher in pre-market trading Thursday, after the electric vehicle maker beat Wall Street estimates for the first quarter of 2022 with record revenue, vehicle deliveries and operating profit. 

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The company posted total revenue of $18.8 billion, up 81% year-over-year. Total automotive revenue came in at $16.86 billion, up 87% from the same period last year, and automotive gross profit came in at $5.54 billion, up 132% year-over-year. Regulatory credits accounted for $679 million of automotive revenue for the quarter. Operating income improved to $3.6 billion during the quarter, resulting in a 19.2% operating margin.

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TSLA TESLA INC. 141.90 -5.15 -3.50%

Tesla cited continued challenges around its supply chain during the quarter that limited its ability to run factories at full capacity, including chip shortages, COVID-19 outbreaks and multiple-fold price increases in some raw materials due to inflation. 

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In March, electric vehicle production began at Gigafactory Berlin-Brandenburg using nonstructural packs with 2170 cells. The company says that Gigafactory Berlin-Brandenburg will be able to produce Model Ys using both structural packs with 4680 cells as well as non-structural packs with 2170 cells.

Elon Musk Tesla

Tesla CEO Elon Musk attends the official opening of the new Tesla electric car manufacturing plant on March 22, 2022 near Gruenheide, Germany. (Christian Marquardt/Getty Images / Getty Images)

In April, Tesla began delivering Model Y vehicles from its new factory in Austin Texas as well as its first vehicles with 4680 in-house made cells, single-piece front body castings and structural battery packs. Later this year, the company expects that Gigafactory Texas will be able to produce Model Ys using both structural packs with 4680 cells as well as non-structural packs with 2170 cells.

Elon Musk at the Cyber Rodeo

Tesla CEO Elon Musk speaks at the Giga Texas manufacturing "Cyber Rodeo" grand opening party on April 7, 2022 in Austin, Texas. (Photo by SUZANNE CORDEIRO/AFP via Getty Images) (Getty Images)

Despite strong weekly production rates during the quarter, the company's Shanghai factory temporarily shut down due to a spike in COVID cases. Tesla emphasized that while limited production at the facility has restarted, it continues to monitor the situation closely. 

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Tesla has released seven software updates so far this year as it continues to develop its Full Self-Driving Beta, which is on track to release to U.S. customers before the end of the year. The FSD beta initially released to customers in Canada in March.  

"Our team continued to work on reducing disengagements, particularly focusing on unprotected left turns and smoothness of the ride through reduction of slowdown events," Tesla said. 

Tesla also added mobile app controls for vehicle climate control modes, enabled users to customize the color of their vehicle in the user interface with metallic and matte finishes, improved charging time estimation accuracy by accounting for battery temperature and allowed child lock to be engaged on individual rear doors. 

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Elsewhere, Tesla's energy storage deployments increased 90% year-over-year to 846 megawatt hours, mainly driven by strong Powerwall deployments. The company is in the process of ramping production at a dedicated Megapack factory to address the growing demand. Meanwhile, solar deployments decreased by 48% to 48 megawatts, which was attributed to import delays on certain solar deployments. 

Looking ahead, the company continues to expect to achieve 50% average annual growth in vehicle deliveries over a multi-year timeframe, which will be dependent on equipment capacity, operational efficiency and the capacity and stability of the supply chain. It warned that its factories will likely continue to run below capacity through the rest of 2022.