Tesla's (NASDAQ: TSLA) financial results for Q1 2022 impressed not only the company's investors, but also analysts. Tesla has received positive feedback and a price target increase as the industry is not yet able to catch up with the Texan manufacturer.
Despite a difficult quarter for Q1 2022, which was full of both foreseen and unforeseen headwinds, Tesla once again managed to achieve record performance. This applied to everything from production to revenues and operating margins.
Tesla delivered 310,048 electric vehicles despite ongoing component shortages, logistical problems, and a production halt at Giga Shanghai due to the COVID lockdown. Sales rose 81% year over year to $18.8 billion. In addition, Tesla earned $3.3 billion in GAAP net income, up 658% from a year ago.
Jefferies analyst Philip Ushua wrote that all of Tesla's key figures exceeded expectations.
Morgan Stanley analyst Adam Jonas said the electric car maker's gap with other competitors is impressive. He emphasized in a statement that the more the firm looks at Tesla, the more they worry about the ability of the rest of the industry to catch up. Jonas also noted that Tesla's revenue is growing nearly three times faster than its capital expenditures, suggesting continued use of free cash flow as the company aims to achieve more efficient use of assets going forward.
Industrial Securities issued a new Buy recommendation on Thursday, whose experts started Tesla coverage with Outperform. The target price is $1,322.
Analyst at Oppenheimer & Co. Colin Rusch raised his price target from $1,103 to $1,291 per share.
The second quarter will be more difficult than the first as Giga Shanghai was closed for two weeks, and production shutdowns at factories in China will also affect the number of parts available for car production and ultimately quarterly numbers. Despite this, most experts are optimistic that Tesla will still cope well with the supply chain problems.
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