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Tesla Shanghai Gigafactory Re-Opens; Q1 Profits Jump By 81%

Tesla made over $18.76 billion in profits during Q1, the company has increased its net income to $3.32 billion, a mind-boggling 81% growth in revenue.

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Nothing can stop the raging bull seems like an appropriate way, to sum up the ongoing Tesla. Although supply chain problems still persist, the company has reported record Q1 profits. 

According to Tesla, the recent  COVID-19 surge in Shanghai has led to a lockdown of its factories and parts of its supply chain. They are closely observing the situation as limited production has now been permitted. 

With the introduction of a “closed-loop system,” the workers are able to isolate themselves by working and living within the premises. The company has reportedly lost almost a month of its production volume. 

CEO Elon Musk remarked on the resumption as: “Giga Shanghai is coming back with a vengeance.” He also believes that production volume during the second quarter will either be on par or a bit lower than the previous year. To achieve on par performance, the Gigafactory is on full throttle as they are aiming for record production numbers. 

Totalling over $18.76 billion in profits during Q1, the company has increased its net income from $438 million last year to $ 3.32 billion, a mind-boggling 81% growth in revenue. However, the production has dipped from 305,840 vehicles to 305,407 vehicles due to the covid-induced lockdowns. 

Resumption of production is necessary since other factories are also under underproduction due to supply-chain disruption. Furthermore, Teslas made in Shanghai account for half of the vehicles sold in 2021. In fact, 60% of all Tesla vehicles sold were manufactured at the Shanghai Gigafactory.  

Ramping up productions seems to be a looming question at the other Gigafactories in Texas and Berlin as well. Tesla stocks witnessed a 5% jump during Wednesday’s extended trading session. 

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