For the third quarter of 2022, Tesla reported increases in production and deliveries of 54% and 42% year over year, respectively, and another record revenue of US$21.5 billion, registering a jump of 56% year over year.
Highlights of Tesla’s 3Q22 earnings
• The lack of components has decreased
• Delivering vehicles has grown more logistically difficult.
• Despite the energy crisis in Germany, production ramps for both vehicles and 4680 batteries continue.
• Shanghai’s annual production capacity exceeded 750,000 units.
• Automotive revenue increased by 55% year over year to US$18.7 billion, setting a new record for the quarter.
• Gross margin is still 25%, the same as it was in the prior quarter.
Given the move to EVs, Musk said that the Tesla operation is recession-resistant.
• IRA will improve the US supply chain for solar and electric vehicles.
Tesla hosted its most recent earnings conference on October 19. The corporation declared another record-breaking revenue and vehicle production during the conference. CEO Elon Musk stated that demand is expected to be robust not only in the fourth quarter of this year but also for the foreseeable future due to the rapid global switch to electric vehicles and the declining value of gasoline-powered vehicles.
Tesla does not believe that China’s and Europe’s respective economic downturns—caused by the collapse of real estate bubbles and the energy crisis, respectively—will have a long-term effect on Berlin production. According to the corporation, the US is doing very well compared to Europe and China, and the enactment of the Inflation Reduction Act (IRA) will considerably support US supply chain growth and automation, particularly in the solar and electric vehicle industries.
Following the European energy crisis, the corporation declared that “almost all suppliers are adequately prepared for that” and that it “had backup plans.”
A notable point is that Tesla still has logistics issues.
Delivery has becoming more challenging to manage as the automaker increases manufacturing in Texas, Texas, Germany, and China. Deliveries are now focused at the conclusion of each quarter and in the final two weeks, Musk noted.
Approximately two-thirds of the deliveries for this quarter took place in September, and a third in the final two weeks, according to Musk.
The demand for outbound logistics increases significantly as production rises, but there aren’t enough ships, trains, or trucks to meet this demand trend. To lessen the strain on logistics, the company stated that delivery batches throughout the quarter will need to be more evenly distributed.
Revenue and margin for Tesla 3Q21-3Q22