Tesla boosted profit to $3.32 billion from January to March from $438 million in the same period a year ago, the company said in earnings.
The automaker’s sales in the first three months of this year rose more than 80% year-on-year to $18.8 billion. The manufacturer delivered 310,048 vehicles from the beginning of January through the end of March.
While others are struggling, Tesla is winning
Tesla has set itself apart from other automakers since the outbreak of the Covid-19 pandemic, posting record deliveries and profits for several quarters. Its competitors are struggling more significantly with global supply chain disruptions linked to either the war in Ukraine or perhaps pandemic lockouts in China.
The electric-car maker raised its prices in China, the United States, and other countries after chief executive Elon Musk said in March that the automaker faced significant inflationary pressure in raw materials and logistics in the wake of the war in Ukraine. However, even here Tesla has a certain competitive advantage over others that we informed you about in an earlier article.
Tesla closed its Chinese factory for about three weeks due to pandemic restrictions. Production gradually resumed this week. However, the situation in China is not very good right now, so we need to keep an eye on the situation. The factory may be closed again if the situation deteriorates.
Tesla’s shares are gaining over 5% after the close of trading and are once again approaching the magic $1 000 mark. Still, Tesla is one of the most talked-about stocks and I believe that not too many value investors will find their way to it even after this news.