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Tesla’s profits broke expectations, setting more records. Stocks are up.

Tesla’s profit was much higher than expected.

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Tesla’s data for the first quarter, released on Wednesday afternoon, looks surprisingly great.

The company (ticker: TSLA) won a record $ 3.22 per share of $ 18.8 billion in total sales, its highest ever. Wall Street was looking for EPS of about $ 2.20 to $ 2.30 per share of about $ 18 billion in sales, while in the fourth quarter of 2021, Tesla earned $ 2.54 per share of sales of $ 17.7 billion.

Operating profit reached a record $ 3.6 billion, compared to expectations of about $ 2.6 billion.

Shares rose 3.7% in after-hours trading shortly after the results were released. Shares fell about 5% in regular trading on Wednesday, while the Nasdaq Composite lost about 1.2%.

The sales of regulatory credits that Tesla receives because it produces more than its fair share of low-emission vehicles have come as a surprise. Credit sales reached $ 679 million in the first quarter, more than doubled expectations of about $ 312 million.

But even excluding credit sales, operating profit was record-breaking and much better than Wall Street had expected.

Inflation was one thing investors worried about and one issue Tesla said in a news release. However, the price of Tesla car actually fell compared to the fourth quarter.

The company scheduled a conference call at 5:30 p.m. Eastern Time to discuss the results.

This is breaking news. Check back soon for more details and analysis.

Write to Al Route at allen.root@dowjones.com