Elon Musk wins $23 billion in awards as Tesla price hikes boost quarterly earnings | business news

Price hikes to offset rising costs in Tesla’s supply chain have boosted the company’s profits and given Elon Musk $23bn (£17.6bn) in rewards.

The electric vehicle founder and CEO who currently faces a bold $43 billion Offer for Twitter and doesn’t take a Tesla salary, that’s fine the richest person in the world by far.

He was deemed eligible for the payout last night after the company met performance targets in the first quarter of the year.

Those targets include Tesla’s stock price and financial performance, with the latter shrugging off global supply chain disruption and production cuts in China — both related to the COVID-19 pandemic.

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Tesla, which also owns a solar panel division, reported sales of $18.8 billion for January through March — boosted by multiple price hikes intended to offset rising costs for lithium, nickel, cobalt and other commodities.

Tesla’s pre-tax profit per vehicle shipped soared to over $16,000 — up more than 60% from the same period last year.

Net income was over $3.3 billion.

Shares — which have fallen more than 7% this year after a meteoric rise over the past 18 months that made Tesla the world’s most valuable automaker — are up more than 5% in after-hours deals.

However, analysts warned that it could be harder for Tesla to release similar numbers later this year as costs continue to rise.

The company is launching new factories in Germany and Texas at a time when the Russian invasion of Ukraine is further driving up raw material costs and eroding consumer incomes – a result of rampant inflation.

It also faces more competition.

Musk said in a conference call with analysts that Tesla’s waiting lists remain long, but he couldn’t rule out further list price increases, saying, “We hope we don’t have to increase prices any further.”

Despite China’s manufacturing and supply chain woes, Tesla reiterated its forecast of 50% compound annual growth in vehicle deliveries over the next few years.

Tesla’s stock price has led a slew of tech growth stocks since 2020

Musk acknowledged that lithium, which is used in battery production, has been responsible for most of the cost increases to date and “a
“limiting factor” for the growth of electric vehicles.

He encouraged companies to get into the lithium business, which he said would generate high margins thanks to high prices.

“Lithium margins are practically software margins right now… Do you like to mint money? Well, the lithium business
is for you,” he said.

Elon Musk wins $23 billion in awards as Tesla price hikes boost quarterly earnings | business news

Source link Elon Musk wins $23 billion in awards as Tesla price hikes boost quarterly earnings | business news

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