Strong Tesla Sales Send 1st Quarter Earnings To 7 Times More Than Year Ago

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Tesla reported Wednesday that its first-quarter net earnings were over seven times greater than a year ago, powered by strong sales despite global supply chain kinks and pandemic-related production cuts in China.

The electric vehicle and solar panel company made $3.32 billion from January through March. Excluding special items such as stock-based compensation, the Austin, Texas, company with facilities in the Bay Area made $3.22 per share. That soundly beat Wall Street estimates of $2.26 per share according to data provider FactSet.Revenue for the quarter was $18.76 billion, also beating estimates of $17.85 billion.

The company said its weekly production for the quarter was strong, but a spike in COVID-19 cases brought the temporary shutdown of its factory in Shanghai, as well as part of Tesla’s supply chain. Shares of Tesla closed Wednesday down nearly 5% at $977.20, but it regained the day’s losses in extended trading, after the company released its numbers. The stock is down about 7.5% so far this year.

Although production has started at the Texas and German factories, Tesla said the ramp up at both sites will take time. The company said its factories have run below capacity because of parts supply shortages.

 

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