Tesla (NASDAQ:TSLA) posted its third-quarter 2022 earnings report after markets closed today. The results, which were discussed in the Q3 2022 Update Letter, were released after the closing bell on Wednesday, October 19, 2022.
Tesla started transitioning into a more regional mix of vehicle builds every week in the third quarter, resulting in the company delivering fewer cars than what Wall Street expected. For context, Tesla delivered a total of 343,830 vehicles in Q3 2022, while producing a total of 365,923 electric cars across its vehicle factories worldwide.
The following is a quick overview of Tesla’s Q3 2022 results.
REVENUE
Tesla posted total revenues of $21.454B billion with a gross profit of $5.382B billion. In comparison, analysts expected Tesla to post revenue of $21.99 billion. Overall, Tesla’s total revenue grew 56% year-over-year in the third quarter.
EARNINGS PER SHARE
Tesla posted non-GAAP earnings per share of $1.05 per share. GAAP EPS is listed at $0.95 per share. In comparison, analysts were expecting Tesla to post non-GAAP earnings per share of $1.00.
PROFITABILITY
Tesla’s operating income improved year-over-year to $3.7 billion in the third quarter. This resulted in a 17.2% operating margin. YoY, Tesla noted that its operating income was affected by increased ASP, growth in vehicle deliveries, and higher raw material, commodity, logistics, warranty, and expedite costs, among others.
CASH
Tesla’s cash increased sequentially by $2.2 billion to $21.1 billion in the third quarter. This was mainly driven by FCF of $3.3 billion, partially offset by debt repayments of $900 million.
OTHER KEY UPDATES
- Tesla Cybertruck is now listed in the Update Letter as a vehicle under “Tooling.”
- Tesla Semi is now listed in the Update Letter as a vehicle under “Early Production.”
- The total number of 4680 cells produced increased 3X in the third quarter.
- Tesla Semi deliveries are expected to start in December 2022.
- Gigafactory Shanghai remains Tesla’s main vehicle delivery hub.
- Gigafactory Berlin produced over 2,000 Model Y per week towards the end of Q3. The vehicles are produced with 2170 batteries.
- Tesla is looking to introduce front and back megacasts and structural battery packs in vehicles produced in Giga Berlin before the end of the year.
- Energy deployments increased 62% year-over-year in the third quarter to 2.1 GWh.
- Tesla Solar deployments increased by 13% year-over-year in Q3 to 94 MW.
- Tesla is still looking to end the year with a growth of 50%, as previously indicated.
Tesla’s Q3 2022 Update Letter can be viewed below.
tesla-Q3-2022 by Simon Alvarez on Scribd
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