Tesla The electric vehicle giant’s Oak Musk, Published its reports for the first quarter of the year tonight (Wednesday). The company reported $ 3.22 earnings per share and revenue of $ 18.8 billion. In doing so, the company overtook the consensus of Wall Street analysts’ consensus, which estimated it would post adjusted earnings of $ 2.25 per share, on revenue of $ 17.65 billion.
The stock is responding with a 5% increase in late trading, while during full trading the evening fell at a similar rate.
In the first quarter of last year, its earnings were just 93 cents a share, so this is a jump of almost 250% compared to that. Since the first quarter of 2020, Tesla’s quarterly earnings have steadily climbed in every report and report, reaching 25 cents to the current high of $ 3.22 per share – which has risen about 40% to market forecasts.
The revenue line is also experiencing significant growth of more than 88%, since in the corresponding quarter last year its revenues were about $ 10 billion. This is the eighth consecutive quarter in which it has shown an increase in revenue.
Tesla does not usually deliver its annual forecasts at the time of publication of the first-quarter reports, but noted that it still expects a 50% increase in dedication this year and that it plans to increase production capacity.
Broke a record in car dedication, but disappointed the market
Earlier this month, Tesla released the number of its vehicle dedications in the first quarter of 2022, reporting a new record when it delivered 310,000 cars and produced 305.5 thousand new ones. This is the largest volume of vehicles the company has delivered to date and a leap compared to the corresponding quarter, when it delivered 184.8 thousand cars and produced 180.3 thousand. At the same time, the market estimated that it would deliver at least 311-317 thousand vehicles, so it did not live up to expectations.
Already in the last quarter reports of 2021, released in January, Tesla warned that “our plants have been working below their maximum output threshold in recent quarters due to supply chain problems, problems that are expected to continue into 2022.”
Tesla cars loaded at a port in China / Photo: SIPG
In the current quarter, activity is also expected to be hit due to the renewed corona restrictions in China, which began in late March and caused production outages at its plant in Shanghai. According to Bloomberg, the plant reopened yesterday but during the shutdown production output fell by about 40,000 cars, which will surely affect quarterly results.
In addition, like other manufacturers in the automotive industry, Tesla was hit by a shortage of parts and a rise in inflation. Essential components, such as chips and other semiconductors, have been very difficult to obtain in recent months and at the same time the prices of raw materials such as nickel, lithium and aluminum have skyrocketed following Russia’s invasion of Ukraine.
Kathy Wood estimates: The stock will quadruple by 2026
Tesla shares outperformed the general market and technology giants in particular, and have soared about 38% in the past 12 months (compared to an 8% return on the S & P500, for example). At the same time, the stock is about 17% far from the peak it reached last November.
This week a new valuation of the Ark for Tesla Fund was released, which is its major holding. The investment giant of Kathy Wood Predicts that by 2026 Tesla shares will more than quadruple, reaching a price of $ 4,600. Recall that at the end of March Tesla announced that it would make a split (Split of shares), at a rate yet to be determined.
At the beginning of the month Alon Musk announced that it had acquired 9.2% of the shares Twitter About $ 3 billion. About a week later, he offered to acquire full ownership of the social network for $ 43 billion, a premium of about 18% on the market price, a proposal that was rejected by Saudi billionaire al-Walid Ben Talal, one of the company’s major shareholders.
Even for the richest person in the world, $ 43 billion is not a small amount, and the market estimates that in order to raise the money to complete the purchase it will have toSold more than 36 million Tesla shares – about one-fifth of its holdings. Alternatively, Musk has $ 54.1 billion worth of Tesla options that he may be able to borrow against them.