With multiple price increases and a significant increase in delivery volume of various models, Tesla ushered in a substantial increase in total revenue and net profit in the first quarter of this year. At the same time, Tesla's gross profit margin of 32.9% in the automobile business is even more amazing, which greatly exceeds that of traditional car companies such as BBA, and is also far ahead of many new car-making forces. Although there is a very high gross profit margin, under the influence of chip shortage, rising raw material costs, and factory production cuts/shutdowns, will Tesla raise prices again in the future, and when should consumers with car purchase needs start?
Revenue and net profit were both harvested
In the latest financial report released by Tesla, its revenue in the first quarter of 2022 was $18.756 billion, an increase of 81% over the first quarter of last year of $10.389 billion; net profit was $3.736 billion, an increase of 255% year-on-year, and the total revenue and net profit both achieved substantial year-on-year growth and achieved a "big harvest". In terms of gross profit margin in the automotive business, Tesla also hit a record high of 32.9%. Tesla is not at all "modest" to achieve such excellent performance, saying that it is mainly due to the increase in product delivery and the increase in bicycle prices.
From the sales volume of Tesla in the first quarter, its global total delivery volume was 310048 vehicles, and sales increased by 69% year-on-year, of which Tesla delivered 108,300 vehicles in the Chinese market, an increase of 56.3% year-on-year, contributing about one-third of sales. In addition to the sharp rise in sales, Tesla also rose again and again in the first quarter of the bicycle price. Taking the Chinese market as an example, Tesla has raised the price of models several times in March alone, of which the cumulative price increase of Model Y has reached 30,000 yuan, and the highest increase of Model 3 has reached 28,000 yuan.
At the same time, in the US market, the price of each Model 3 model increased by $2,000-3,000; the price of each Model Y model also increased by $2,000-3,000; the model S basic version and the high-performance version increased by $5,000; and the model X price increased by $10,000. Therefore, in the case of soaring sales and bicycle prices, Tesla achieved revenue growth and set a new record of 32.9% gross profit margin in the automobile business.
How "scary" is a 32.9% gross margin?
Perhaps many people do not have a specific concept of the gross profit margin of 32.9% of Tesla's automobile business, so we will use the gross profit margin of each car company to visually compare it. Taking the three major luxury brands BBA most familiar to Chinese consumers as an example, the annual gross profit margins of Mercedes-Benz, BMW and Audi in 2021 will be 12.7%, 17.6% and 10.7%, respectively. In contrast, Tesla's gross profit margin not only far exceeds that of BBA, but even reaches three times that of Audi. Compare the new power brands with closer products. Taking "Wei Xiaoli" as an example, the gross profit margin of WEILAI is 20.1%, Xiaopeng is 12.5%, and Ideal Automobile is 20.6%. In contrast, although the gross profit margin of the new power brand is higher than that of the BBA, there is still a significant gap compared to Tesla.
If the 32.9% gross margin does not reflect Tesla's "horror", then we will start with the specific amount. According to Tesla's first quarter earnings report, the revenue of its car sales business was $15.514 billion, combined with sales and gross margin, Tesla's average net profit per car sold was about $10,700, and Tesla's current average bicycle price was only about $56,000. I believe that such a comparison can make everyone know more clearly how much Money Tesla makes selling cars.
Whether Tesla will still raise prices
Although Tesla has already made a lot of money in the first quarter, will Tesla raise prices again in the current market environment of the epidemic, chip shortage and rising raw material prices? According to Musk in the earnings report, although the Shanghai Gigafactory suffered a shutdown before, it has now resumed normal operation. According to Musk, the output of the Shanghai Gigafactory this year will increase by 60% compared with last year. On the other hand, Tesla's Berlin factory in Germany is also in operation. Therefore, under the guarantee of mass production, Tesla will not fluctuate too much in price in the future.
In the view of "Car One Circle": As far as Tesla's performance in the first quarter is concerned, although it has experienced product price increases and factory shutdowns, it has still achieved outstanding marketing results as a whole. Looking back at musk's annual production target of 1.5 million vehicles set at the beginning of the year, the successful resumption of production at the Shanghai Gigafactory, and the addition of two new gigafactories in Austin, Texas and Berlin, Germany, Tesla should not have too many problems in completing the target this year. At the same time, consumers who plan to buy Tesla can also be relatively assured to start, and the price of Tesla models will be relatively stable in the future after the production is stable.