By the end of the year, Tesla might have a pleasant surprise

By the end of the year, Tesla might have a pleasant surprise ...

Even for the largest electric car manufacturer, times are tough, but good news may be on the way.

Tesla () - reported first-quarter earnings, record sales, and a negative near-term forecast, which violated Wall Street's expectations.

'Rabbit Out of the Hat'

This all comes at a time when many companies, including Tesla, are being hit by inflation, raw material prices, and logistics expenses.

During the earnings call for the company, CEO Elon Musk said that he felt confident about the future.

Musk says the program will continue to see a 50% increase in automobile manufacturing in 2022 instead of 2121. "I think we have a reasonable advantage over the previous year. Let's see."

The world's richest man said that vehicle production in the second quarter would be most likely to be similar to the first quarter, or perhaps somewhat lower.

"It's also possible that we pull a rabbit out of the hat and be slightly higher," Musk said. "But then, the numbers of cars for Q3 and Q4 will be substantially higher. "It's also possible that we'll be able to produce more than one and a half million cars this year, according to my best guess."

Higher pricing, according to Chief Financial Officer Zach Kirkhorn, continues to positively impact our financials as we make advancement delivering automobiles in our growing backlog.

According to analysts, Kirkhorn, who described the quarter as "challenging but extremely successful" and said that delivery wait periods for most Tesla vehicles are lengthy.

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"We continue to be concerned about inflation, raw material prices, expedites, and logistics costs," said the narrator.

Musk called in, explaining that "prices of automobiles ordered now are anticipating supplier and logistics cost expansion," which we're aware of in the coming six to twelve months.

'Coming With a Vengeance'

"So that's why we have the price increases today, because a car ordered today will arrive in some cases, a year from now," he said. "So we have a long wait list."

Tesla, according to Kirkhorn, is "trying to anticipate where things will go" and make sure that the pricing that we had established at the time that those raw material cost increases struck us that they align, and that the company can remain financially stable in various situations as we look out for the next four quarters.

"We hope we don't need to increase the pricing further," Musk said. "The current pricing is anticipating what we think is the likely cost increase. And even if that cost increase does not take effect, we may significantly decrease prices."

Lockdowns have hit the Shanghai location, and Kirkhorn claims that Tesla was losing about a month of build volume due to Covid-related closures.

"Production is returning to modest levels, and we're attempting to resume production as quickly as possible," he said. "This will have an impact on total build and delivery volume in Q2.

Musk said the Shanghai facility is "coming back with a vengeance."

"So I think not acknowledging new issues that arise, I think we will see a record output per week from Giga Shanghai this quarter, although we are missing a couple weeks," he said.

Musk has been on a roll lately. On April 7, he inaugurated in Austin, Texas, and on April 24 Twitter () - agreed to Musk's $44 billion takeover offer, which will become a private company.

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