Texas-based automaker Tesla posted record operating profits for first quarter 2022 along with record revenues and vehicle deliveries, while overcoming supply chain issues and factory shutdowns and topping analysts’ predictions, Kallanish reports.

It reported net earnings of $3.32 billion or $3.22/share. That compares to $428 million or $0.93/share in Q1 2021. That is a 658% increase. The $3.22/share beat predictions of $2.26/share. The results also top the $2.6 billion predicted by analysts. Revenue was $18.8 billion in the quarter, up 81% from 1Q 2021. That topped estimates of $17.85 billion.

Automotive revenues were $16.86 billion, up 87% from Q1 2021. Automotive gross margins were a record 32.9% with the company reporting automotive gross profit of $5.54 billion in its main segment. That compares to $2.21 billion in Q1 2021, an increase of 147%.

Revenue growth was driven by an increase in the number of cars delivered by Tesla and an increase in the average sales price, the company says. Earlier this month, the company said it produced 305,000 vehicles and delivered 310,000 vehicles in the quarter. Model 3 and Model Y vehicles account for 95% of Q1 deliveries.

On the earnings call, ceo Elon Musk says the company expects to produce 1.5m cars this year and some customers ordering vehicles now may not get them until next year. The company says it is confident that production can grow by 50% in 2022 over the prior year, even though Covid-19 shutdown a China plant for a month and operations are just getting back to normal.

Tesla says it expects supply chain issues to continue through 2022, and Musk says inflation is worse than reported and will continue. The company must raise prices when raw materials increase in cost, Musk says. Its lowest price car starts at $47,000.