Recently, Tesla delivered a record number of vehicles in the first quarter of 2022, while also announcing higher profits than in the past. Tesla produced 305,407 vehicles in the first quarter of 2022 and delivered 310,048 vehicles, of which 295,324 were Model 3 and Model Y and the remaining 14,724 were Model S and Model X.
Against the backdrop of rising sales and generating no less than $18.76 billion, Tesla's profit in the first quarter was $3.32 billion, significantly exceeding the $2.3 billion profit in the previous quarter, contributing to the sharp rise in Tesla's profit due to the increase in the price of its vehicles.
Now, the Model 3 starts at $46,990, 34 percent higher than it was three years ago, and Musk said in a speech on Tesla's earnings call that rising costs and strong demand prompted Tesla to raise prices.
Musk said: "Given our record profitability this quarter, it looks like we are not justified in raising vehicle prices, but the delivery list of our vehicles is quite long. Moreover, the delivery of some vehicles ordered by consumers will continue until next year. Therefore, the prices of the vehicles we order now are actually an expectation of the increase in supplier and logistics costs, which is believed to change in the next 6 to 12 months".
Tesla did face some adversity in the first quarter, and the pandemic also forced the suspension of production at its Shanghai factory, but Musk believes the factory can rebound.
Musk believes Tesla can produce 1.5 million cars this year, and he also encouraged more car owners to join the fully autonomous driving test program, noting that Tesla seems to be two steps forward and one step back in developing self-driving systems.