On Wednesday, Musk said that he expects the automaker’s sales volume to increase by its stated goal of 50 percent a year into the foreseeable future, and growth could hit 60 percent this year despite a recent weeks-long shutdown at its Shanghai factory due to coronavirus.
“We are already back up and running with the Shanghai factory,” said Musk, who described the quarter as overall very difficult due to semiconductor shortages and rising costs.
Some parts suppliers have increased prices by 20 percent to 30 percent this year compared to last year, said Musk, who expects inflation to remain high through the rest of 2022.
Musk also justified Tesla’s repeated price increases for its models, since the lag between ordering a Tesla model and receiving it is up to a year, and therefore must reflect future costs.
In its earnings report after the market close Wednesday, Tesla said net income and revenues surged after the EV maker delivered record units at higher prices.
The company posted first-quarter net income of $3.32 billion, compared with a profit of $438 million a year earlier, according to Reuters. Revenue rose to $18.76 billion from $10.39 billion a year earlier.
Earnings per share and revenue exceeded Wall Street expectations. Tesla reported earnings per share of $2.86 while analysts expected $2.26. Revenue exceeded Wall Street forecasts by about $1 billion.
Tesla has been an outlier since the pandemic outbreak, posting record deliveries and earnings for several quarters as rivals wrestled with global supply chain snarls rolled out production halts.
Reuters contributed to this report.
