SAN FRANCISCO – Tesla Inc results surged past Wall Street expectations, as higher prices helped insulate the electric vehicle maker from supply chain chaos and rising costs.
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.
Shares of Tesla rose 6% after the close of regular trading.
On an investor conference call, CEO Elon Musk said Tesla has a reasonable shot at achieving 60% vehicle delivery growth this year and remains confident of seeing 50% annual delivery growth for several years.
“Price increases are nicely exceeding cost inflation,” said Craig Irwin at Roth Capital.
“Chinese production issues seem well managed, and we expect Austin and Berlin to make up the slack from Shanghai´s 19-day outage.”
Tesla raised its prices in China, the United States and other countries, after Musk said in March the US electric carmaker was facing significant inflationary pressure in raw materials and logistics amid the crisis in Ukraine.
“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 according to Reuters.
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.
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