Tesla beats revenue, profit estimates on record deliveries

Tesla said chip shortages and recent COVID-19 outbreaks have been weighing on its supply chain and factory operations, while prices of some raw materials have increased multiple-fold in recent months. Pic: Reuters

Tesla Inc surged past Wall Street estimates for quarterly revenue and profit on Wednesday, as the electric carmaker raised prices in response to inflation, offsetting the impact of a Shanghai factory shutdown.

Tesla has been an outlier since the pandemic outbreak, posting record deliveries and earnings for several quarters when rivals wrestling with global supply chain snarls rolled out production halts.

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"Our 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," Tesla said in a statement.

Shares of Tesla rose 4% after the close of regular trading.

Tesla raised its prices in China, the United States and other countries, after CEO Elon Musk said in March the U.S. electric carmaker was facing significant inflationary pressure in raw materials and logistics amid the crisis in Ukraine.

The world`s most valuable automaker said revenue was $18.8 billion in the first quarter ended March 31, versus estimates of $17.8 billion, according to IBES data from Refinitiv. This is up 81% from a year earlier.

Musk offered to buy Twitter last week, sparking concerns about him being distracted from the electric carmaker at a time when it is ramping up production at new factories in Berlin and Texas. The new factories will be key to meeting demand and reducing reliance on its China factory, its biggest one, which is slowly recovering from a plant shutdown.

There are concerns that Musk may sell some Tesla stocks or borrow against additional Tesla shares to finance his $43 billion bid to buy Twitter.

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