Tesla once "went crazy" in March this year, and Musk seems to be getting farther and farther away from his dream of launching a more affordable electric car.
The outbreak of the new wave of the new crown epidemic and the Conflict between Russia and Ukraine has exacerbated the global supply chain crisis, and the cost of superimposed raw materials has soared, and the electric vehicle industry is facing huge price increase pressure.
Tesla's price increase in the first quarter of revenue exceeded expectations
In March of this year, Tesla frantically raised prices three times in a week. As for the reason for the price increase, Tesla said that it is mainly because of the rising cost of raw materials.
After the U.S. stock market on Wednesday, April 20, 2022, Tesla announced its first quarter 2022 earnings report. Revenue, earnings and gross margins in the first quarter were all higher than market consensus expectations.
Tesla's operating income in the first quarter increased by 81% year-on-year, adjusted net profit increased by 255% year-on-year, and the gross profit margin of the automotive business exceeded 30% for three consecutive quarters.
At the same time as the financial report was released
Tesla said that despite several price increases, the challenges of supply chain and input costs continue. Regarding the balance between cost and price, Tesla describes it this way:
Supply chain challenges remain. In addition to chip shortages, the recent outbreak of COVID-19 has also affected supply chains and factory operations. In addition, the prices of some raw materials have risen several times in recent months. Although we continue to focus on reducing manufacturing costs, inflation still has an impact on the cost structure, prompting us to adjust product prices.
It is worth mentioning that Musk also said earlier this month that Tesla is developing a robot taxi, which is scheduled to be mass-produced in 2024. Building a fleet of self-driving taxis requires a lot of money, which could be a future use for Tesla's cash flow.
After the announcement of this eye-catching first-quarter report card, Tesla stock price jumped more than 6% at one point in after-hours trading.
The cost of raw materials soared Musk's dream of "affordable" electric vehicles shattered
1, to create an expensive small car, at a high-end price into the automotive industry.
2, use the money earned by this car to develop a cheaper medium-sized sedan.
3, use the money earned from these cars to build a large car that can afford it.
4. Finally, the low-end market is conquered at a low price.
However, Tesla frantically raised prices three times in a week in March. As for the reason for the price increase, Tesla said that it is mainly due to the continuous shortage of automotive chips. Geopolitical conflicts and the COVID-19 outbreak have contributed to continued tensions in global supply chains.
In addition, since 2022, the price of metal raw materials has risen sharply. Whether it is cobalt, nickel and lithium carbonate, raw materials involving batteries, or other raw materials such as iron, manganese and copper involving automobile manufacturing, prices have become rising and have become an important thrust for the price increase of new energy vehicles.
At present, the price is undoubtedly the biggest factor restricting the popularity of electric vehicles. In the face of the sharp rise in raw material costs, the Wall Street Journal said tesla seems to be moving from the pricing intention of "affordable and affordable electric vehicles for the masses" to becoming closer and closer to becoming "one of the expensive rides."