As tech firms around the world deal with various component shortages thanks to COVID-19 disrupting supply lines, cobalt and nickel for batteries are among the components facing shortage issues. Tesla is attempting to get ahead of this issue though. During Q1 2022, Tesla reported that nearly 50 percent of its vehicles shipped with lithium iron phosphate (LFP) battery packs.
This tidbit of news comes from Tesla’s earnings results for Q1 2022, which were put out on April 20, 2022. According to page 8 of the presentation included with Tesla’s Q1 2022 earnings results, the company has taken note of cobalt and nickel shortages and sought reasonable alternatives to keep up with production, which factored heavily into its Q1 2022 manufacturing.
Tesla had quite a solid Q1 2022 to report. The company posted a 32.9 percent automotive gross margin in the previous quarter. The company also reported having around $18 billion in cash on its balance sheet as of the end of the quarter. This was all despite the fact that Tesla is still dealing with supply line disruption thanks to continuing issues with COVID-19 (some of which is affecting the aforementioned stock of cobalt and nickel).
All of these various positive factors saw Tesla (TSLA) stock climb over $1,000 per share, as charted on Yahoo Finance. With the company going strong into its Q2 and getting ahead of various supply constraints that would otherwise limit production, it will be interesting to see how it performs through this next quarter. Stay tuned for more financial reporting here at Shacknews.