Tesla (TSLA) Earnings for Q4 2022

Tesla (TSLA) Earnings for Q4 2022

Tesla founder Elon Musk at Offshore Northern Seas 2022 in Stavanger, Norway on August 29, 2022.

Karina Johansen | NTB | via Reuters

Electric vehicle maker Tesla reported earnings after the call, surpassing both earnings and revenue. Shares rose more than 5% after CEO Elon Musk said the company could produce 2 million vehicles this year. Here are the results.

  • Income (adjusted): $1.19 vs. $1.13 per share expected, according to Refinitiv data.
  • Income: $24.32 billion vs. $24.16 billion expected, according to Refinitiv.

In last year’s quarter, Tesla reported revenue of $17.72 billion and adjusted earnings of $2.52 per share ($0.85 adjusted for the August 2022 stock split).

Tesla reported fourth-quarter automotive revenue of $21.3 billion, up 33% from last year. $467 million of that amount came from regulatory loans in the fourth quarter of 2022, almost double the amount from the previous year for the same period.

Gross profit from the automotive industry was 25.9%, the lowest in the past five quarters. Operating cash flow was down 29% year-over-year and 36% quarter-on-quarter to $3.28 billion.

In a shareholder deck, the company acknowledged that average sales prices “have generally been declining for years” and said that “affordability” will be necessary for Tesla to grow into a company that sells several million cars a year.

In late 2022 and this year, Tesla lowered the prices of its vehicles around the world, upsetting customers in the US and China who recently bought new Teslas at higher prices, as well as triggering an instant price drop for used Teslas in the US.

However, price cuts seem to have sparked demand. Speaking on a phone call with shareholders and analysts on Wednesday, CEO Elon Musk said: “So far in January, we have seen the highest year-to-date bookings than ever in our history. production”.

One analyst asked Musk why Tesla’s 2023 production forecast was just 1.8 million vehicles after the company ramped up production at its new factories.

Musk responded, “We say 1.8 because it always seems like there’s some goddamn force majeure going on somewhere on Earth. We have no control over whether earthquakes, tsunamis, wars, pandemics, etc. occur. If it is a smooth year, without any major supply chain interruption or major problem, we have the potential to produce 2 million vehicles this year. I think there will be demand for that too.”

The company did not release new forecasts, but reiterated in its earnings report: “We plan to increase production as quickly as possible in line with the 50% compound annual growth target we started targeting in early 2021.”

Musk also responded to an analyst’s question about the Twitter purchase by touting the social network as a great way to connect with customers.

“I have 127 million subscribers. And they continue to grow rapidly. It means that I’m quite popular. . [I have one of] the most attractive accounts, social media accounts maybe in the world, definitely on Twitter, and that actually predated the acquisition. So Twitter is actually an incredibly powerful tool to drive demand for Tesla. And I really encourage companies of all kinds in the automotive or any other industry to use Twitter more and use their Twitter accounts in an interesting, informative, entertaining way that will help increase sales, as Tesla did.”

Other income information

Tesla services and other revenue, including fees for out-of-warranty auto repairs, reached $1.6 billion in the quarter.

Revenues from energy generation and storage grew consistently year-over-year to $1.31 billion. However, its energy division’s revenue value was high, at $1.15 billion in the fourth quarter.

Tesla said it has installed capacity across its factories to produce 100,000 Model S and X vehicles and 1.8 million Model Y and Model 3 vehicles annually.

Learn more about electric vehicles from CNBC Pro

The Shanghai manufacturing facility allows Tesla to produce 750,000 Model 3 and Model Y electric vehicles annually, the company said, while its first plant in Fremont, Calif., can produce 100,000 more expensive Model S and X vehicles and 550,000 Model vehicles. 3 and Y cars. Plants in Austin, Texas and near Berlin, Germany, are capable of producing 250,000 Model Y vehicles a year, the company says.

Tesla also said that about 400,000 customers in North America now have the opportunity to test its experimental “FSD Beta” driver assistance system. The company recognized deferred income of $324 million for the FSD-related quarter, according to a shareholder presentation.

This driver assistance system is only available to customers who have purchased or subscribed to Tesla’s premium driver assistance package marketed as FSD or full self-driving capability. Tesla does not make autonomous vehicles or driver assistance systems that can be safely used without a driver behind the wheel, ready to steer and brake at a moment’s notice. FSD Beta contains new software features that the company has not yet fully fine-tuned.

The company also confirmed that its Cybertruck pickup truck is due to begin production this year in Texas.


Written by khirou

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