Tesla (NASDAQ: TSLA) recently released its Q4 and FY 2022 earnings report, which highlighted the company’s strong performance over the past year despite the challenges it faced. In this article, we will provide an overview of Tesla’s Q4 and FY 2022 results, as well as the company’s outlook for 2023.
Production and Deliveries
In the fourth quarter of 2022, Tesla produced over 439,000 vehicles and delivered over 405,000, setting new records for the company. Year-over-year, vehicle deliveries grew by 40% to 1.31 million units, while production grew by 47% to 1.37 million cars.
Revenue and Profitability
Tesla posted total revenues of $24.318 billion in the fourth quarter, representing a 37% year-over-year growth. Additionally, the company posted a gross profit of $5.777 billion, which is the highest quarterly revenue for the company to date. Analysts had expected Tesla to post revenue of about $23.6 billion in Q4 2022.
Tesla’s operating income improved year-over-year to $3.9 billion in the fourth quarter, resulting in a 16% operating margin year-over-year. The company also posted non-GAAP earnings per share of $1.19 per share in Q4 2022, which was higher than the $1.13 per share that analysts had expected.
Margins
Automotive gross margins were at 25.9% in the fourth quarter, which is still impressive but slightly lower than expectations, which were at 26.4%.
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Cash
Tesla’s quarter-end cash, cash equivalents, and investments reached $22.2 billion in the fourth quarter. The company’s Q4 and FY Update Letter attributed this to free cash flow of $1.4 billion and offset by debt repayments of $497 million.
FY 2022 Results
For the full year of 2022, Tesla’s total automotive revenues were at $71.462 billion, of which $1.776 billion were regulatory credits. Automotive gross profit was at $20.354 billion, and automotive gross margins were at an impressive 28.5%.
Total revenues for 2022 were at $80.462 billion, with total gross profit for the year at $20.853 billion. Total GAAP gross margin for 2022 was at 25.6%.
Outlook
Tesla is optimistic about its future prospects and is aiming high for 2023. The company stated that it expects to remain ahead of the long-term 50% CAGR with about 1.8 million cars for the year. Tesla also highlighted that it has enough liquidity to fund its future product roadmap, long-term capacity expansion plans, and other expenses.
The company also noted that it expects its hardware-related profits to be accompanied with an acceleration of software-related profits. Tesla believes that it can still have the highest operating margin among volume OEMs.
In terms of future projects, the Tesla Cybertruck is still on track to start production this year at Gigafactory Texas. Additionally, the company will be sharing details of its next-gen vehicle platform on Investor Day, which is set to take place on March 1, 2023.
You can view/download the official earning result from Tesla Investor Relation Website: https://tesla-cdn.thron.com/static/GZR0GS_TSLA_Q4_2022_Update_PVPJAG.pdf
