Tesla is making bank despite supply chain struggles... and also raising prices?
๐ Background: Electric vehicle company Tesla has faced some steep challenges in the first quarter. We're talking global supply chain issues and rising transportation, labour and manufacturing costs ๐.
๐ What happened: These problems have limited Tesla's ability to run its factories at full capacity for several quarters, an issue they say is likely to continue throughout the rest of the year.
๐ What else: Somehow... Tesla just reported $3.3 billion worth of net income, which just so happens to be a 658% increase from the same time last year. And yet, it's considering raising its prices AGAIN ๐.
๐ก There's a direct relationship between supply chain issues, raw materials costs, and consumer pricing.
๐ก Tesla says the waitlist for vehicles extends into next year. Basically, this means Tesla's prices for cars ordered now are really anticipating supplier and logistics cost growth that will happen over the next six to 12 months ๐ธ.
๐ก With inflation at a 40-year high, suppliers are under severe cost pressure. So Tesla, a company that just announced $3.3 billion of net income... is passing those costs onto consumers. Cheeky? We'll let you decide.
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