This is the quarterly balance sheet period, and Tesla’s fiscal fourth 2022 report falls into a special context. Against all odds, the electric car maker has managed to beat Wall Street analysts’ forecasts.
Tesla continues to gain momentum
Inflation, supply issues in China, etc. The entire automotive industry has suffered many setbacks in 2022, and Tesla is no exception. The manufacturer was particularly affected by the behavior of its CEO, Elon Musk, who bought Twitter for $44 billion. To finance the operation, he did not hesitate to sell shares in Tesla, which greatly impacted the company’s market price, which fell over 60% in a year.
Despite this, the company’s fourth-quarter revenue was $24.3 billion, up 37% from the same period in 2021 and up 13% from the third quarter. Analysts had expected the company to make about $24.2 billion. Net income for the quarter was $3.7 billion, up from $3.3 billion in the third quarter, according to Tesla.
For the full year, Tesla’s profit more than doubled from $5.5 billion in 2021 to $12.6 billion in 2022. The company delivered 1.3 million vehicles for the year, up from 2021 but short of the target that was set at 1.4 million units, up 50% year on year.
Revenue in 2022, including revenue from solar panels, energy storage and other businesses, increased to $81.5 billion from $53.8 billion a year earlier. “As other areas of the business become more important, in particular the energy business, which is growing faster than the automotive business, we are very focused on operating leverage here and improving the efficiency of our overheads,” said Zachary Kirkhorn, chief financial officer of Tesla. officer, during a conference call about quarterly earnings.
Congratulations to the Tesla factory team in California on record production! pic.twitter.com/1aF53hgWgM
— Mr. Tweet (@elonmusk) January 26, 2023
Emphasis on financial inclusion
On the other hand, the gross margin, that is, the ratio that measures the profitability of sales, of the company’s automotive business was 25.9%, the lowest in the past five years. This is attributed to a significant reduction in Tesla’s costs to make its cars more attractive and attract more consumers. The maneuver is already bearing fruit, Musk says: “We had the strongest bookings in our history in January so far. We are currently receiving orders at almost twice the capacity.”
With that in mind, Tesla explained that it will now focus on affordability, which is a key yardstick to reach its goal of selling several million vehicles a year. What’s more, the company just announced a $3.6 billion expansion of its Nevada gigafactory. The latter will house two new complexes for the production of semi-trailers and batteries.
Tesla plans to deliver 1.8 million vehicles in 2023, but Musk said “if the year goes well, without supply chain disruptions or major problems, we have the ability to produce 2 million vehicles this year.”
Despite ever-increasing competition, with incumbent automakers selling more affordable electric vehicles, Tesla remains the most valuable car company in the world.