Tesla Q1 earnings 7 times more than year ago on strong sales

Tesla has reported first-quarter net earnings over seven times greater than a year ago

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 a record $3.32 billion from January through March. Excluding special items such as stock-based compensation, the Austin, Texas, company 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. It was boosted by multiple price hikes meant to offset rising costs of lithium, nickel, cobalt, and other raw materials.

It may be harder for Tesla to post similar numbers later this year. It's facing costs from ramping up new factories in Germany and Texas, as well as rising commodity prices. It's also looking at increased competition as startups and legacy automakers roll out more electric models.

But CEO Elon Musk said on a conference call with analysts that waiting lists are long even as Tesla raised prices anticipating costs that will come during the next six to 12 months. “We are obviously not demand limited, we are production limited," he said.

Tesla has been spared many increases because of long-term contracts that have kept costs down, Mr. 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.

“We hope we don't need to increase the pricing further,” Mr. Musk said.