Tesla’s (NASDAQ:TSLA) second-quarter 2022 earnings call comes on the heels of the company meeting analysts’ expectations. Despite the challenges it faced in the second quarter, however, Tesla still achieved an operating margin that’s among the highest in the industry of 14.6%. The company also posted positive free cash flow of $621 million.
Tesla’s war chest continued to grow in the second quarter, though many will likely be drawn to the fact that the company sold the majority of its Bitcoin holdings. At the end of the second quarter, Tesla converted about 75% of its Bitcoin purchases, adding $936 million of cash to the company’s balance sheet.
Tesla also ended the quarter with the highest vehicle production month in the company’s history. This was hinted at by Tesla in a rather subtle update on its factories’ vehicle capacity estimates. As seen in the company’s Q2 2022 Update Letter, Giga Shanghai is now listed with an annual capacity of over 750,000 cars, and the Fremont Factory is listed at 550,000 vehicles per year.
The following are live updates from Tesla’s Q2 2022 Earnings Call. I will be updating this article in real-time, so please keep refreshing the page to view the latest updates on this story. The first entry starts at the bottom of the page.
15:33 CDT – And that’s a wrap! Thanks once again for staying with us on yet another Tesla earnings call. Till the next time!
15:30 CDT – Elon shares his thanks to Tesla’s suppliers again. As it turns out, Tesla already uses a lot of custom silicon. This is no surprise, considering Tesla’s tech pedigree.
15:28 CDT – A question about Tesla’s AI projects was asked. Elon notes that while he does not want to steal any thunder from AI Day, he stated that people should expect existing news on AI Day. “I think we’ll be further ahead than most people think,” he said.
15:25 CDT – Toni Sacchonagi from Bernstein asks about Tesla’s vehicle demand and potential pressures. He wonders if Elon and Zach’s comments were just speculations, or if there’s empirical data available on it, like cancellations and the like.
Elon notes that Tesla has no demand problem. It’s a production problem. “It’s always been a production problem,” he said. “We’re trying to make the backlog lower, not longer,” Musk said.
Sacchonagi posts a follow up question about Elon’s commitment to Tesla in the next few years. Elon jokes that if there’s only good news, then he won’t be on Tesla’s earnings call. Like in Q2, with the shutdowns in China. “I’ll work in Tesla as long as I can help advance the course of sustainability and autonomy,” he said.
15:22 CDT – Colin Rusch of Oppenheimer asks about FSD and its pricing. Elon notes that Tesla will increase the price of FSD, probably once the system hits wide beta. With the wide beta, FSD would be made available to everyone who requests (and pays) for it. Musk notes that assuming FSD materializes, it would be extremely cheap for what it provides.
15:17 CDT – Emmanuel Rosner from Deutsche Bank asks about Tesla’s vehicle demand. Is the company worried about its vehicle sales amidst Elon’s views on the economy? Elon notes that Tesla’s main worry is production.
Kirkhorn adds that there does not seem to be much macroeconomic effects on Tesla’s vehicle demand. As for the company’s backlogs, Tesla has a very long runway. The world is not certain, so there’s a lot of things that is yet to be seen. “Demand is something we don’t spend a lot of time talking about,” Kirkhorn said.
Elon also highlighted that there’s a difference between demand and affordability. He adds that he hopes Tesla could reduce its prices a bit. He also notes that Tesla has a good chance of exiting this year with 40,000 vehicles per week. Kirkhorn adds that it will be a challenge to hit such volumes but it’s feasible.
15:14 CDT – Pierre Ferragu of New Street Research asks about Tesla’s 4680 cells. He asks about the cells’ specifics. Are the 4680s more formidable than what they’re advertised as? Tesla notes that its focus on 4680 cells is all about simplicity. However, Tesla has plans to layer in new material technologies. “We’re not holding back.”
Elon describes some challenges in 4680 production. “When something is revolutionary, there are a lot of unknowns,” he said. Tesla is making progress, but the first order of business is to get the basics right. The main target is high production.
Drew notes that a lot of the uber high density battery innovations are not feasible for mass production. He also reiterates that Tesla is more than willing to share its battery innovations with its partners. This is true. Panasonic and LG are also working on their own 4680 cells. Panasonic is even building a factory in Kansas for it.
Elon discusses batteries further. He states that Tesla sees constraints in refining of the materials to make the battery cells like lithium. He adds that there’s not a shortage of materials on Earth, but there’s a need for more refining. “There no fundamental barrier, its simply a rate question here,” Musk said.
“If our suppliers don’t solve these problems, then we will,” Elon Musk added.
15:04 CDT – Final investor question asks about the Cybertruck and its availability. Elon notes that Tesla is hoping to start Cybertruck production by the middle of next year.
15:02 CDT – Tesla doesn’t see major problems for the components barring any Covid-related shutdowns.
15:01 CDT – Is Giga Texas producing 4680 cells already? Tesla exec Drew Baglino notes that the ramp is going. In Q2, Tesla’s Kato Road has ramped significantly. “Kato output has grown 35% month over month,” Baglino said. There are new ramp challenges to overcome in Texas and Berlin, however. That said, Tesla expects 4680 cell production in Texas by the end of this quarter.
16:59 CDT – A question about Andrej Karpathy’s departure was asked. Elon notes that Andrej is awesome, but he has decided to contribute more to core AI at an academic level and get back to coding individually. “We’ve got a team of 120 people in our software AI group that are incredibly talented. I’m highly confident that we’ll solve FSD,” Musk said.
16:57 CDT – Tesla executives like Elon, Drew, and others are now just geeking out. It’s pretty cool to hear. You can really tell that these guys are engineers at heart. “There’s a lot of opportunities to improve casting and extend them to more parts,” Elon Musk said.
16:54 CDT – A question about Tesla’s 4680 batteries was asked. Musk reiterates his explanation about structural packs being like the wings of airplanes, which are now used to hold fuel. Dual usage of 4680 is the superior architecture. “The structural pack is beating the non-structural pack,” Musk said, adding that structural packs will be better over time.
16:52 CDT – A question about Tesla’s cryptocurrency holdings was asked. Elon notes that Tesla’s purpose is to accelerate the advent of sustainable energy. “Cryptocurrency is a sideshow to the sideshow. Cryptocurrency is not something we think about a lot,” Musk said. “My primary goal here is to have the day of sustainable energy come sooner.”
16:50 CDT – A question about Tesla’s lowering prices was asked. How aggressively will Tesla lower its prices? Elon notes that the wait after customers order a vehicle is substantial. Tesla then tries to predict the inflation rate when a person takes delivery of the car.
“This is fundamentally dependent on macroeconomic inflation. It’s not something we can control,” Musk said, noting that he believes inflation should decline by the end of the year. There could be a slight decrease in car prices with inflation rate starts declining.
Elon and other Tesla executives note that there is a need for lithium processing. Elon Musk invites people get into the refining business again. “It’s like software margins . You can’t lose,” Elon said.
16:46 CDT – The second investor question asks about Tesla’s unified vector space. Elon notes that it’s not necessary for FSD, but it should improve the performance of the system.
16:45 CDT – Investor questions begin. First question deals with the Chinese competition. Elon notes that he has a lot of respect for China’s EV manufacturers. “They’re smart, they’re hardworking, and anybody that’s not as competitive as them will suffer a decline,” Musk said. That said, “Right now the best Chinese EV manufacturer is actually Tesla China,” the CEO added.
16:43 CDT – Kirkhorn notes that it’s still possible for Tesla to hit a growth of 50% this year. “Tesla is positioned for a record-breaking second-half of the year,” he said.
16:41 CDT – The CFO notes that the Tesla Energy business is still components constrained. Operating costs for Giga Austin and Berlin are also being more manageable. “Operating expenses in Austin and Berlin have wound down,” Kirkhorn said. He also explains Tesla’s decision to sell its Bitcoin. Elon says Tesla still has ALL its Dogecoin, though.
16:40 CDT – Zach takes the floor, reiterating that Tesla still made progress despite the challenges presented in the second quarter. He notes that the Fremont factory reached new production records with help from Reno team. Energy business also achieved record gross profit, particularly the Tesla Solar team.
16:38 CDT – Elon still expects Cybertruck production to start at the middle of 2023. “FSD Beta is on track to be released for all of North America by the end of this year,” Musk said. AI Day is also coming, with the CEO saying that the event will be pretty exciting for many.
16:37 CDT – Elon notes that Tesla has made advances in its manufacturing system. Thanks to megacasts, body-welding casting robots have been reduced by 70%. Body shops now are three times smaller than what is normally the case. “But this journey is not over,” Musk said, saying that the Cybertruck has significant manufacturing improvements.
16:35 CDT – FSD Beta has traveled 35 million miles. That’s “more than any other company combined.”
16:35 CDT – Elon notes that Tesla has enough 2170 cells to satisfy all vehicle production this year. 4680 cells will truly make a difference next year. Giga Texas is ramping, ad Tesla is “expecting Giga Texas to exceed 1,000 car per week milestone in a couple of months.”
16:33 CDT – Elon’s opening remarks. He highlights Shanghai’s shutdown. But despite this, it “was still a record-breaking quarter for Tesla.” This means that Tesla can have a really impressive second half of the year. He admitted that supply chain challenges are still prevalent. “It’s been kinda supply chain hell for several years,” Elon said.
16:31 CDT – And it starts! Tesla VP of investor relations Martin Viecha opens the call. Elon’s present, and so is CFO Zach Kirkhorn and a number of other executives.
16:30 CDT – And it’s time! The music is still playing though. Are we looking at a slight delay?
16:28 CDT – Alright, two minutes left. Wonder if Elon would be in the call?
16:25 CDT – To be fair, Tesla did run into its own fair share of issues in the second quarter. This makes the company’s Q2 results even more impressive. Simply put, +42% of revenue, a gross profit of +47%, EBIT of +88%, and GAAP EPS of +91% translate to a “bad” quarter for Tesla.
16:15 CDT – Greetings everyone, and welcome to another Tesla earnings call live blog! The second quarter has been challenging for Tesla, to the point where analysts were actually on point with their predictions on the company’s results. That being said, Tesla still finished Q2 on a strong note, with a strong war chest, while still being profitable.
That’s an accomplishment. Period.
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.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Investor's Corner
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter.
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter, which was published on Tesla’s Investor Relations website after markets closed on January 28, 2025.
The results cap a quarter in which Tesla produced more than 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products. For the full year, Tesla produced 1.65 million vehicles and delivered 1.63 million, while total energy storage deployments reached 46.7 GWh.
Tesla’s Q4 and FY 2025 Results
According to Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP earnings per share of $0.24 and non-GAAP EPS of $0.50 in the fourth quarter. Total revenue for Q4 came in at $24.901 billion, while GAAP net income was reported at $840 million.
For full-year 2025, Tesla reported GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Total revenue reached $94.83 billion, including $69.53 billion from automotive operations and $12.78 billion from the company’s energy generation and storage business. GAAP net income for the year totaled $3.79 billion.
Earnings call updates
The following are live updates from Tesla’s Q4 and FY 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.
16:25 CT – Good day to everyone, and welcome to another Tesla earnings call live blog. There’s a lot to unpack from Tesla’s Q4 and FY 2025 update letter, so I’m pretty sure this earnings call will be quite interesting.
16:30 CT – The Q4 and FY 2025 earnings call officially starts. IR exec Travis Axelrod opens the call. Elon and other executives are present.
16:30 CT – Elon makes his opening statement and explains why Tesla changed its mission to “Amazing Abundance.” “With the continued growth of AI and robotics, I think we’re headed towards a future of universal high income,” Musk said, adding that along the way, Tesla will still be improving its products while keeping the environment safe and healthy.
16:34 CT – Elon noted that the first steps for this future are happening this year, thanks to Tesla’s autonomy and robotics programs, which will be launching and ramping this year. He also highlighted that Tesla will be making major investments this year, though the company will be very strategic when it comes to its funding. “I think it makes a ton of strategic sense,” Musk said.
16:36 CT – Elon also announces the end of the Model S and Model X programs “with an honorable discharge.” If you’re interested in buying a Model S or X, it’s best to do it now, Musk said. The Model S and Model X factory in Fremont will be replaced by an Optimus line. “It’s slightly sad, but it is time to bring the S and X program to an end. It’s part of our overall shift to an autonomous future,” Musk said.
16:38 CT – Elon discusses how Unsupervised FSD is now starting for the Robotaxi service. He noted that these Unsupervised Robotaxis don’t have any chase cars as of yesterday. He reiterated Tesla’s plans for owners to be able to add their own vehicles to the Robotaxi fleet. Autonomy target for the end of the year is about a quarter or half of the United States, Musk said.
16:41 CT – Elon noted that the Tesla Energy team is absolutely killing it. He also stated that Tesla expects its Energy business to continue growing, and that the “solar opportunity is underrated.”
16:43 CT –Elon also added that Tesla Optimus 3 will be unveiled in about three months, probably. The Model S and Model X line in Fremont will be a million-unit Optimus production line. Looks like Optimus is really coming out of the gate with large, meaningful volumes. “The normal S curve for manufacturing ramps is longer for Optimus,” Musk stated. “Long term, I think Optimus will have a significant impact on the US GDP.”
16:44 CT – Elon closes his opening statements with a sincere thanks to the Tesla team. He also noted that he feels fortunate to be able to work alongside such a talented workforce.
Elon ends his opening remarks with an optimistic prediction about the future.“The future is more exciting than you can imagine,” he concluded.
16:47 CT – Tesla CFO Vaibhav Taneja makes his opening remarks. He discusses several aspects of Tesla’s Q4 milestones. He noted that Tesla Energy achieved yet another gross profit record during the fourth quarter. There’s insane demand for the Megapack and Powerwall. Backlogs for these products are healthy this 2026. He also noted that Tesla ended 2025 with a bigger vehicle order backlog compared to recent years.
16:53 CT – Investor questions from Say begin. The first question is about Tesla’s expectations for the Robotaxi Network. Lars Moravy noted that it has the advantage of manufacturing and scale, and Tesla believes that the Robotaxi Network will significantly grow year over year. Elon highlighted that the Cybercab will be produced with no steering wheel or pedals. No fallback. Elon also noted that Tesla expects to produce more Cybercabs than all its other vehicles combined in the future.
16:51 CT – The next question is if Tesla still expects to launch new models, such as affordable cars. Lars Moravy noted that Tesla did release affordable variants last year, and Tesla is still pushing hard to lower its costs. That being said, Tesla is really pushing the Cybercab as its total addressable market is larger than consumer-owned cars. Lars also mentioned that Tesla will produce different vehicles for its Robotaxi services.
16:56 CT – Elon noted that eventually, Tesla will produce mostly autonomous cars. The exception would be the next-generation Roadster, which will be a true driver’s car.
17:03 CT – A question about Elon’s past comments about a potential next pickup truck was asked. Lars noted that the Cybertruck is still performing well in the electric pickup truck segment, though Tesla is known for flexibility. Elon added that Tesla will be transitioning the Cybertruck line to a fully autonomous vehicle line. He also stated that the Cybertruck is a useful vehicle. “An autonomous Cybertruck will be useful for that.”
17:10 CT – A question was asked about when FSD will be 100% Unsupervised. Elon noted that 100% Unsupervised FSD is already being used today, though only in the Austin Robotaxi program. Tesla is still being extremely careful with its rollout.
When asked about Tesla’s chip program, Elon noted that he feels pretty good about Tesla’s chip strategy. But in terms of selling Tesla’s chips outside Tesla, the company has to make sure it has enough chips for Optimus robots, data centers, and other programs first.
17:18 CT – Analyst questions begin. First up is Wolf Research. He asks about Tesla’s increasing Capex, specifically where the majority of it is going. The Tesla CFO noted that programs in six factories are going live this year, so that consumes Capex. The Optimus program also consumes a lot of resources. The growth of Tesla’s current capacity is also consuming a lot of resources. As for how these programs will be funded, the CFO pointed to Tesla’s massive war chest, as well as initiatives such as the Robotaxi Network.
17:21 CT – Morgan Stanley asks about Tesla’s xAI investment. The analyst asked about more information about how Tesla and xAI will work together. The CFO noted that this investment is part of Master Plan Part IV. Elon also mentioned some advantages for xAI’s technology for Tesla’s products, like Grok being used to manage a Robotaxi fleet or a group of Optimus robots.
17:24 CT – Barclays asks Elon about the constraints on memory. Does Tesla have any near term constraints for Tesla vehicles’ memory? Elon responded that the Tesla AI computer is already very compute and memory-efficient. The intelligence per gigabyte is important. Musk noted that Tesla is ahead of the industry by an order of magnitude or more.
17:29 CT – Cannacord asks about startups from China entering the humanoid market. What competitive advantage does Optimus have compared to these rivals? Elon stated that he believes China will be a key competitor in the humanoid robot market. China will be the toughest competitor for Tesla. That being said, Elon noted that Tesla believes Optimus will be ahead in real-world intelligence, electromechanical dexterity, and hand design.
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