Tesla has been spared many increases because of long-term contracts that have kept costs down, Musk said, but those contracts will expire. Some suppliers are seeking 20% to 30% price increases from last year through the end of this year, he said.Tesla’s lowest-priced car, the Model 3, now starts at nearly $47,000.
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 more than 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.Despite the Chinese production and supply chain problems, Tesla reiterated its guidance of 50% annual average growth in vehicle deliveries over the next several years.
Tesla also says it expects “Full Self-Driving” beta test software to be released to all U.S. customers who purchased the feature by the end of the year. Musk said about 100,000 owners are testing the system now, on public roads. Tesla has said the cars cannot drive themselves, despite the name, and drivers must pay attention and be ready to intervene at all times.
Then why's my $TSLA stock been down for months?
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Strong Tesla Sales Send 1st Quarter Earnings To 7 Times More Than Year AgoTesla 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.
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