Tesla Opened 2022 with a relatively strong quarter. In the first quarter ending in March, the electric vehicle maker broke its revenue record and rolled in $ 18.76 billion, an 80% increase over the same quarter last year. Earnings per share were also particularly impressive, reaching $ 3.22 compared to $ 0.93 the previous year. In these two top- and bottom-line indices, Tesla shattered analysts’ forecasts for the previous quarter, also breaking its own record in terms of the vehicle gross profit margin of 32.9%.
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However, expectations from the company leading Elon Musk For the second quarter, which ended in June, much lower. Earlier, Tesla reported that in the second quarter it delivered 254,000 vehicles, a decrease of 18% compared to 310,000 deliveries in the first quarter. It was the first time ever that Tesla had reported a drop in vehicle dedications for two consecutive quarters.
The decline in dedication was primarily affected by the closures in Shanghai that shut down Tesla’s most productive plant, as well as a shortage of chips and raw materials and supply chain problems. All of these cut the car production and so did the dedication. Accordingly, Wall Street analysts forecast revenue of $ 17.23 billion in the second quarter, down 8% from the first quarter, and adjusted earnings per share of $ 1.86 per share. In the same quarter last year, earnings were $ 1.45 per share, so even if this is an unexciting outlook compared to previous quarters, it will still be an annual increase.
Musk has a “very bad feeling” about the economy. What are the forecasts going forward?
Beyond the current quarter results, investors and analysts are waiting to hear Musk and Tesla’s forecast for the rest of the year. Musk predicted earlier this year that Tesla would be able to increase its total vehicle supply in 2022 to 1.5 million, a 60% increase over last year. In the first half, however, the company provided only 564,000, which means that it needs to significantly increase its pace.
In addition, Musk also expressed pessimism about the economic situation and said he has a “very bad feeling”, so it will be interesting to find out if Tesla will change the forecast amid a possible recession. Tesla recently laid off 220 employees from its autonomous driver unit as part of spending cuts. At the same time, the company is trying to improve results by charging a fee for a previously provided free charge kit and through a plan to open its network of fast charging stations in the US to other car owners.
Musk starred in the media quite a bit this summer in the context of a deal he drafted for the acquisition Twitter . This deal has meanwhile been canceled by Musk and now the parties are preparing for a legal battle over the cancellation. As part of the analysts’ conversation following the reports, Musk is expected to address this as well.