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Tesla Q4, 2022 Earnings
We have Tesla's Q4, 2022 earnings results. Here they are:
* Total revenue: $24.318 billion (37% increase YoY)
* Auto revenue: $21.307 billion (33% increase YoY)
* Auto gross margin: 25.9% (down from prior quarters)
* Non-GAAP EPS: $1.19 (40% increase YoY)
* GAAP EPS: $1.07 (57% increase YoY)
* EBITDA: $19.186 billion (65% increase YoY)
Of note is that most analysts and Tesla bulls predicted that Tesla would have about $1.10 Non-GAAP EPS. This was pretty spot on. Tesla has FSD deferred revenue, but this will be backed out as a 1 time event and not be material to Tesla's forward-looking outlook.
Tesla also had discounts for the last week of the year of about $7,500 for the Model 3 and Model Y and that no doubt had an effect on margins. Tesla also had about 30,000 vehicles in transit and didn't deliver as many vehicles in Q4, 2022 as expected.
Tesla had its worst quarter even in stock performance, being down about 54% compared to the S&P 500 index at a flat trajectory.
Tesla increased revenues about 51% from 2021 to 2022. Tesla increased EBITDA about 6% from 2021 to 2022.
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My Interpretation of the Earnings
Here is what Tesla had to say about its Q4, 2022 results:
* There was positive growth in vehicle deliveries
* There was growth in other parts of the business
* There was an increase in ASP (average selling price)
* A negative FX impact of $1.4 billion
Tesla deployed more solar and storage than the previous quarter, continuing the growth of Tesla Energy. Tesla Energy storage grew 152% from Q3 to Q4, 2022, and that is a story worth watching.
From 2021 to 2022, overall, production grew by about 43% for Model 3 and Model Y vehicles and for Model S and Model X production grew by 192%. Total production saw a 47% increase.
Tesla once again produced a record number of vehicles, and they are still trying to smooth out deliveries at the end of the quarter.
Giga Texas has a run rate of over 3,000 vehicles per week. There is also first deliveries of the Tesla Semi.
Giga Shanghai had production and delivery challenges in 2022. Giga Shanghai will remain Tesla's main export hub.
Giga Berlin reached over 3,000 vehicles per week and added quicksilver and midnight cherry red as colors.
FSD now has about 400,000 users and is still in beta.
Tesla's Energy storage grew and remains more than they can supply for the demand. They are ramping their Lathrop factory to get to 40 GWh for Megapack.
Tesla guided to grow production as quickly as possible, with a 50% CAGR target. In some years, they will grow faster and some slower. For 2023, Tesla expects to remain ahead of the 50% CAGR with around 1.8 million cars for the year.
Tesla has enough cash to fund its operations and the Cybertruck remains on track to begin production later this year at Giga Texas. The generation 3 vehicle is under development with additional details coming at investor day, March 1st, 2023.
Tesla increased its cash pile to $22.2 billion, adding $1.1 billion of cash. Tesla recognized $324 million of revenue for FSD.
These results were about what was expected. I don't see the stock moving up, but moving down a little due to this.
What do you think of Tesla's Q4, 2022 earnings - is this what you expected?
In Related News: Elon Musk Tells Employees Not To Worry About Stock
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.
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