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Tesla reports Q3 earnings this week: Here’s what investors want to know

Credit: Tesla

Tesla (NASDAQ: TSLA) reports earnings for Q3 2022 on Wednesday, October 19, after the market closes. Both institutional and retail investors are submitting questions that Tesla executives will answer on Wednesday about the company’s vehicle roadmap, expectations for growth, and details regarding the company’s extensive order log, which has pushed deliveries of some vehicle trim levels back to 2023.

Tesla accepts questions from investors through Say, a platform used by investors to communicate with companies. Both retail and institutional investors are asking some interesting questions that could also help clear some confusion regarding Tesla’s plans for Q4 and early 2023.

The questions listed were upvoted the most by other investors and are expected to be read by Vice President of Investor Relations Martin Viecha during the call on Wednesday.

Retail Investors

  1. Do you still expect 50% annualized growth for the foreseeable future? Is this also true for specifically the Chinese domestic market? Do you expect to need to cut vehicle prices or offer incentives in any market to sustain demand, or has demand remained stable or is even rising?
  2. We keep hearing of the dire energy crisis in Germany this winter. What are Tesla’s plans to combat power cuts, and will there be any delays in ramp up in production from Giga Berlin because of this?
  3. How is production planning going for the Cybertruck? What is the initial phase 1 production target? When can we expect an update on pricing and final design?
  4. What is the progress of 4680 cell ramp, and what factors determine whether vehicles get 2170 vs 4680 cells and how will that change in the next year?
  5. Can you share a little bit more on the production ramp targets for the Semi now that production has started?

Institutional Investors

  1. Given the stringent battery content and assembly requirements for consumer tax credit eligibility under the Inflation Reduction Act, can you speak to Tesla’s ability to meet those thresholds in each of 2023, 2024, and 2025 with your existing and planned supply chain?
  2. What updates can you offer on the backlog and recent order intake trends, especially outside of the U.S. (and specifically in China)?
  3. Can you tell us more about the product + feature roadmap beyond new models and FSD, and specifically for the interior and powertrain of existing vehicle models?
  4. Can you talk about how Tesla could adjust if we were to enter a prolonged recession, including new product prioritization, investment flexibility (new factory, factory expansion, service/support infrastructure), productivity/cost measures, and demand stimulation alternatives?
  5. Investors are bombarded daily with reports demand in China is deteriorating. Can you comment on how you plan to keep pricing competitive amidst significant gov’t subsidies helping the competition? Can Tesla maintain and grow its margins in this environment?

Q3 Production and Deliveries

Tesla reported its Q3 production and delivery numbers on October 2, recording 365,923 vehicles built and 343,830 cars delivered. It was a strong quarter for the company as it rebounded from a weak Q2, where Tesla did not report quarterly delivery growth for the first time in 10 quarters. Tesla missed analyst expectations, which sent the stock tumbling. Tesla shares are down nearly 30 percent this month.

Tesla Q3 2022 vehicle delivery and production results: 344k delivered and 365k produced

Tesla said supply chain challenges caused the weaker quarter, as some deliveries that were slated for the end of Q3 ended up being pushed to Q4:

“Historically, our delivery volumes have skewed towards the end of each quarter due to regional batch building of cars.  As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.  In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter.  These cars have been ordered and will be delivered to customers upon arrival at their destination.”

Tesla’s Q3 earnings call will take place on Wednesday at 4:30 PM CT (5:30 PM ET).

Disclosure: Joey Klender is a TSLA Shareholder.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla reports Q3 earnings this week: Here’s what investors want to know
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