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Tesla is now more profitable than Ford and GM despite selling far fewer vehicles in Q1

Credit: Tesla Inc.

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Tesla may be the rising star of America’s automotive sector, but for the longest time, Detroit giants General Motors and Ford have held significant advantages over their younger rival. Ford and GM still tend to deliver far more vehicles per quarter than Tesla, and they also tend to earn more money than the EV maker. The latter is no longer true. 

During the first quarter, Tesla reported a net income of $3.31 billion, representing a year-over-year increase of 658%. In Q1 2021, Tesla earned $438 million. In comparison, GM posted a net profit of $2.93 billion in the first quarter, a 3.04% year-over-year decrease. Ford, despite the success of vehicles like the Mustang Mach-E and the strength of its F-Series, posted a net loss of $3.1 billion in Q1 2022, partly due to its investment in electric truck maker Rivian. 

Tesla already dominates its American-born peers in the automotive sector in terms of market cap, with the company currently being valued at over $900 billion, and that’s after a substantial dip that’s likely aggravated by CEO Elon Musk’s recent TSLA selloff. General Motors currently has a market cap of $56.57 billion, while Ford is currently valued at $59.24 billion. 

It should be noted that Ford and GM still delivered far more cars than Tesla in the first quarter. The EV maker announced that it had delivered 310,048 cars in Q1 2022, which is still far behind Ford’s 970,000 and GM’s 1.427 million. Despite delivering less cars, Tesla still made more money than its more experienced Detroit-based rivals. 

According to The Street, Tesla was able to accomplish this due to a variety of factors. One of these is the company’s adjusted EBITDA margin in Q1 0222, which increased to 26.8% in the first quarter from 17.7% last year. GM’s adjusted EBIT margin was at 11.2% in the first quarter, while Ford posted an adjusted EBIT margin of 6.7%. 

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Tesla seems to have accomplished this through a variety of novel strategies. Arguably one of these is the company’s savings on traditional advertisements. Tesla spends $0 on ads, relying instead on word-of-mouth and CEO Elon Musk’s online presence on Twitter to spread its brand image. Both Ford and GM are big ad spenders, with the latter spending $2.22 billion in advertisements in 2020, according to Statista

With Tesla now taking the crown of most profitable American automaker, there are only a couple more titles left for the EV company to claim. One involves the number of vehicles produced and delivered per year, and another is revenue. Vehicle deliveries and production may still take some time as Tesla only has four working EV factories today, but in terms of revenue, the electric car maker may be getting a shot sooner than expected. 

In the first quarter, GM’s revenue was listed at $35.98 billion, while Ford posted $34.48 billion. Tesla’s Q1 2022 revenue was listed at $18.76 billion. 

Disclaimer: I am long TSLA.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla cites competitive harm in attempt to keep certain crash data private

Tesla wants some data to be kept from the public because competitors could use it for their own benefit.

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Credit: Tesla

Tesla is citing competitive harm as it is attempting to keep certain crash data private from the public in relation to a lawsuit against it and the National Highway Traffic Safety Administration (NHTSA) from the Washington Post.

In a federal court filing seen by Reuters, Tesla said it wanted some of the crash information the Post was attempting to obtain to be kept confidential because it could be used by rivals to assess the company’s self-driving tech.

Tesla touts its self-driving suite as one of the most robust on the market, and those who have used it believe it to be one of the best around. However, accidents do happen, and while Tesla still has not reached full autonomy and tells drivers to continue paying attention to be prepared to take over, the company still seems to take a lot of the blame for them.

There are also some things that could be revealed about Tesla’s self-driving strategy if it were to release the data, the company says. The efficacy of each version of its FSD suite could allow competitors to calculate how many crashes occurred on each release.

Attorneys for the Washington Post said that Tesla’s versions of both software and hardware are not kept private from owners themselves, so the information should be made public.

The NHTSA has been investigating accidents involving Tesla’s Full Self-Driving suite since it opened an investigation last October.

The company is used to dealing with attempts to hinder the progress or capabilities of the FSD suite. When used correctly, it can be a widely beneficial suite that helps make driving less stressful, but Tesla has always been more than vocal that it cannot be used as a replacement for human drivers, at least not yet.

Currently, Tesla Full Self-Driving still requires owners to pay attention and be aware of road conditions, as they may have to take over unexpectedly.

Tesla is hoping to launch its Robotaxi platform in Austin next week on Thursday, as it has reportedly landed on June 12 as its launch date.

Tesla lands on date for Robotaxi launch in Austin: report

However, media skepticism regarding the suite’s capabilities has conveniently started to ramp up as the Robotaxi platform launch nears.

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SpaceX marks 500th Falcon launch with Starlink 11-22 Mission  

The Starlink 11-22 mission marks SpaceX’s 500th Falcon flight & 50th Starlink launch of 2025. Will SpaceX IPO Starlink next?

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SpaceX celebrated its 500th Falcon rocket launch with the Starlink 11-22 mission, a midweek flight from Vandenberg Space Force Base in California.

The milestone was achieved with a Falcon 9 liftoff on Wednesday at 4:40 p.m. PDT (7:40 p.m. EDT, 2340 UTC). It also coincided with the 15th anniversary of the first Falcon 9 launch, underscoring the company’s dominance in the commercial space sector. The Starlink 11-22 mission, SpaceX’s 50th Starlink launch of 2025, highlights the company’s focus on expanding its satellite internet constellation.

Earlier this week, Elon Musk revealed SpaceX anticipates $15.5 billion in revenue this year, surpassing NASA’s $1.1 billion budget for 2026.

SpaceX’s reusable Falcon 9 and Falcon Heavy rockets have driven down launch costs, securing a significant share of the global launch market. In 2024, the company set a record with 134 Falcon launches, making it the world’s most active launch operator. SpaceX aims to surpass this with 170 launches by year-end, fueled by growing demand for satellite deployments. The Starlink constellation is a key revenue driver for SpaceX and remains central to these ambitions. Musk has hinted at a future public offering for Starlink without specifying a timeline.

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Beyond Falcon rockets, SpaceX is advancing its 400-foot Starship system, which Musk envisions as critical for Mars missions. The company’s cost-effective launch services and satellite communications have outpaced traditional space agencies, leveraging commercial demand to fund its interplanetary goals. While NASA focuses on deep space exploration, SpaceX’s revenue model thrives on frequent, reliable launches and Starlink’s expanding reach.

“I would like to thank everyone out there who has bought Starlink because you’re helping secure the future of civilization, making life multi-planetary, and helping make humanity a space-exploring civilization,” Musk said during his Road to Making Life Multiplanetary discussion.

The 500th Falcon launch marks a pivotal moment for SpaceX, reflecting its transformative impact on space access. As the company pushes toward record-breaking launch targets and multi-planetary aspirations, Starlink’s growth continues to fuel its vision, positioning SpaceX as a leader in shaping the future of space exploration and connectivity.

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Tesla is missing one type of vehicle in its lineup and fans want it fast

Tesla is missing one vehicle from its lineup and its fans and owners are hoping the company builds it.

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Tesla’s lineup of vehicles has expanded considerably over the last few years. At first, the company offered the Model S luxury sedan, then the Model X luxury SUV, which has the seats but not the space or the affordability that everyone is looking for.

The Model 3 and Model Y are sedan and crossover vehicles that have launched the company into the mass-market category. The Cybertruck brought out the company’s first-ever pickup design, and while it is unorthodox, it is certainly functional.

Tesla Cybertrucks join Jalisco’s police fleet ahead of FIFA World Cup

But there is one thing Tesla is missing in its lineup, and it is a vehicle type that many have waited for and want. The company currently has not announced any plans to produce it, but its fans are loud and persistent, and we’ve even nudged Tesla to consider making it.

It’s a full-size SUV.

This particular segment is dominated by combustion engines currently: Chevrolet Tahoe and GMC Yukon topped sales with 105,756 and 82,304 units sold, respectively. The Ford Expedition is just behind with 62,007 units sold last year. There are a few formidable competitors on the EV side of things, with the Rivian R1S, the GMC Hummer SUV EV, and even the Kia EV9.

However, Tesla has yet to dip its toe into this market, and it seems many of its fans are willing to admit that the company is missing a true “people mover” with enough space to handle a cross-country road trip with a handful of kids.

Why Not the Model X?

The Model X is likely Tesla’s lowest-selling vehicle. It contributes very little to the overall mission of the company, and even CEO Elon Musk once said that it, along with the Model S, is only produced due to “sentimental reasons.”

When it comes to the X, it’s simply not quite what people are looking for in terms of a “full-size SUV.” Instead, it is more of a van/crossover SUV hybrid. It does not have tons of cargo and interior space.

It does have a lot of great tech, a flashy look, and adequate range for that trip with the kids. It’s a great car, and one that Tesla is planning to refine with an upcoming refresh, its second this decade.

However, it falls short of what would qualify as a full-size SUV, especially considering its third row is a little tight, even for younger children.

But it’s not quite what many would consider as what Tesla needs to fill this void in its lineup.

What Could Be Coming?

Many fans say they would like to see a CyberSUV — something built on the Cybertruck platform but in the form of a full-size SUV. This is not totally out of the question, especially considering Tesla has already made it clear the Cybercab would adopt the same sort of aesthetic as the Cybertruck.

However, we can all agree it’s a far cry from what the Cybertruck truly is, and Tesla likely will not build something that’s even close to the pickup. It already admitted it would not adopt the stainless steel exoskeleton for future vehicles in the Q4 2024 Shareholder Deck.

So, if Tesla were to decide to build something that would be in the full-size SUV segment, it wouldn’t look like the Cybertruck.

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