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Tesla Earnings: Analysts respond to company’s Q4 and Full Year 2022 Guidance

(Credit: Tesla)

Tesla (NASDAQ: TSLA) reported its Earnings for Q4 and Full Year 2022 this evening, and analysts seem pleased with what the automaker presented and reported.

Tesla reported a beat in EPS, reporting $1.19 per share, while the Street expected $1.13 per share. Additionally, the automaker reported revenues of $24.318 billion.

Tesla Q4 and FY 2022 results: TSLA beats on revenue and EPS, slight miss on auto margins

Analysts are reacting to the quarter, with long-term expectations still remaining bullish for Tesla as the company moves forward.

Wedbush’s Dan Ives said Tesla’s delivery guidance of 1.8 million vehicles for 2023 is “just what the Street wanted and margins will compress but [are] better than feared.” The analyst stated this was a “flex the muscle” view from Tesla, showing strong expectations for this year despite a “dark macro storm.”

Jesse Cohen, a Senior Analyst for Investing, said, “Tesla’s solid quarter is the latest sign that it has done an outstanding job navigating through global supply chain and logistics challenges, weathering the storm better than most legacy automakers.”

Tesla said in its Q4 and Full Year 2022 Shareholder Deck that there are certainly “questions about the near-term impact of an uncertain macroeconomic environment,” but it still expects to continue accelerating cost reduction while driving toward higher production rates.

No car company on Earth has been immune to supply chain challenges, however, some have been better at navigating them than others. Tesla has gained a huge advantage with demand as it dropped prices by as much as $13,000 in the United States this year already. However, it will still need to hold its composure and stability in terms of building and ramping production of these vehicles.

While it only delivered 1.313 million cars in 2022, a ten percent miss on its usual 50 percent delivery increase goal, Tesla admitted that most of its production and delivery challenges were concentrated in China at its Gigafactory Shanghai location.

Ives delivered additional commentary after the call concluded:

“Demand story and commentary from Musk strong on Tesla’s earnings call. Volumes look strong out of the gate in January post-price cuts, and China a key dynamic. In our opinion, this was a bullish call and realistic delivery numbers set for 2023. Street should digest this well.”

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 Earnings: Analysts respond to company’s Q4 and Full Year 2022 Guidance
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