Tesla surges to record profits despite industry setbacks

Tesla clocked another record quarter in the first three months of this year, delivering more cars, recording higher profits and posting its biggest operating margin in 13 years of production. The EV firm's latest financial report reveals profits of $3.3 billion (£2.5bn), up $700 million (£536m) on the final three months of 2021. Earlier this month, Tesla revealed that it had delivered a record 310,048 cars over the period – a 68% year-on-year increase – with the Tesla Model 3 saloon accounting for the vast majority of those. That's despite the ongoing effects of the global supply chain crisis and a government-imposed lockdown in Shanghai in line with China's zero-Covid policy, the effects of which CEO Elon Musk has described as "exceptionally difficult". Detailing its financial performance for the first quarter, Tesla noted that "a continuation of global supply chain, transportation, labour and other manufacturing challenges" restricted its production capacity, most significantly in Shanghai, but it has now begun production at its long-awaited Berlin gigafactory and the Tesla Model Y crossover is now running down the lines at its site in Austin, Texas. Limited production is now back under way in Shanghai, but Bloomberg reports that workers will have to sleep at the site in accordance with local social distancing restrictions. Tesla also cites the rising cost of essential production materials as an inhibiting factor and, as a result of these, has repeatedly increased prices of its cars in an effort to preserve margins. But this has not impacted demand and Musk expects a 60% year-on-year sales increase over the course of 2022. The firm's revenues climbed 81% in the first quarter to $18.8bn (£14.4bn), chiefly because of the higher delivery volume, raised costs per unit and "growth in other parts of the business", Tesla said. Once again, the brand affirmed its commitment to expansion of its production capacity over the introduction of new models – the long-awaited Tesla Cybertruck and Tesla Roadster, for example, have not been given a concrete launch date – but Musk did provide an update on his plan to launch an autonomous 'robotaxi', previously scheduled to be on the roads by 2020. The self-driving vehicle, details of which have not yet been given, is expected to be put into production by 2024, according to Musk, and is planned to have the lowest cost per mile of any ride-hailing proposition. Musk said it will be "a massive driver of Tesla growth" but he does not "want to jump the gun" on revealing another product. He said details are likely to be given at an event in 2023 - when he has also previously said the Roadster and Cybertruck will finally launch, as Tesla will not launch any new models in 2022.