Tesla has raised prices, but that doesn’t affect demand for its electric vehicles. Tesla saw a significant rise in profits as customers were willing to pay more for their services.
Although the company faces higher costs, profits for Elon Musk’s electric car company jumped to $3.3 billion (2.5 billion PS) in the first three months as customers were willing to pay more.
Tesla’s profits soared in Q3 as customers paid more for their vehicles.
Tesla reported a profit of $311.5 million for Q3 and a total profit of $622.4 million for the year.
Tesla’s revenues were $6.8 billion, and gross margins were 20.8%.
Tesla’s gigafactory also hit a milestone of producing its first battery cells in the third quarter, which will be used in Tesla’s Powerwall 2 and Powerpack 2 energy products.
The company’s shipments increased by 68% and would have been higher, being it not for the supply chain deficit, the company said. Its factory in Shanghai was also recently closed due to Covid restrictions. As the plant reopens this month, Bloomberg said that staff will have to sleep inside the factory to avoid other lockdowns.
“While limited production has recently resumed, we continue to monitor the situation closely,” Tesla said, sharing quarterly results with investors. In recent weeks, Tesla has been looking to expand, opening new factories in Texas and Germany. The company delivered more than 310,000 vehicles in the first three months of the year, and in a conference call, CEO Elon Musk predicted that the company would produce 60% more cars for the year compared to last year.
Tesla does not advertise its products, but it attracts frequent headlines, often associated with Musk’s controversial comments. But the company said it has also seen a surge in orders after increased marketing from rival electric vehicle makers.
What are Elon Musk’s plans for Twitter?
Elon Musk is on the team developing a service integration with Twitter. In an interview with Bloomberg, he said that “Twitter can be great.” According to Musk, “maybe Twitter will be a fundamental part of how people actually communicate in the future.”” We’re going to try and make Twitter as enjoyable as possible,” Musk said.
Musk said Tesla plans to start mass-producing a robotic taxi without a steering wheel or pedals by 2024. While Tesla’s shares rose more than 5% after hours after good results, some investors fear that Musk may be distracted from the electric car maker. His attention as it expands.
Mr Musk, known for his sometimes misguided thinking on Twitter, recently made an unsolicited offer to buy the social media platform for $43 billion. The rise in Tesla stock prices in recent years has made Musk the wealthiest person in the world, with an estimated net worth of more than $260 billion. That’s nearly $100 billion more than its closest competitor, Amazon founder Jeff Bezos.