Tesla rallies after margins impress despite supply chain pressures
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Tesla (NASDAQ:TSLA) jumped in after-hours trading after powering through supply chain issues and late-quarter disruption in Shanghai to comfortably top estimates with its Q1 earnings report.
The company generated $3.3B in GAAP net income during the quarter and $3.7B in non-GAAP net income.
The automaker reports it produced 305,407 vehicles in Q1 (+69% Y/Y) and delivered 310,048 vehicles (+68%).
Operating margin shot up to 19.2% of sales to improve from last quarter's mark of 14.7%. Automotive gross margin excluding regulatory credits was 30.0% vs. 27.7% consensus and 29.2% last quarter.
Tesla (TSLA) said it plans to grow its manufacturing capacity as quickly as possible and reiterated that over a multi-year horizon, it expects to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on equipment capacity, operational efficiency and the capacity and stability of the supply chain. Tesla (TSLA) noted that its own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022.
As expected, Tesla (TSLA) pointed to the inflationary impact on its cost structure, which contributed to adjustments in vehicle pricing.
Solar deployments fell 48% to 48MW in Q1.
Of note, Tesla (TSLA) expects hardware-related profits to be accompanied with an acceleration of software-related profits this year.
Tesla (TSLA) ended the quarter with a cash position of $18.0B. Total debt excluding vehicle and energy product financing fell to less than $100M at the end of Q1.
Shares of Tesla (TSLA) rose 4.08% in after-hours trading to $1,017.10 after peeling off 4.96% during the regular session. The all-time high for Tesla is $1,243.49.
The TSLA conference call is scheduled for 5:30 p.m. ET and could feature crucial details on the production timeline, demand trends, and the energy storage business.
Sector peers in after-hours trading: Lucid Motors (LCID) +0.55%, Fisker (FSR) +0.88%, Nikola (NKLA) +0.50%, Rivian Automotive (RIVN) +1.96%.