NASDAQ$TSLA

Tesla Motors, Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Tesla achieved high operating margin, positive free cash flow, and record vehicle production despite challenges.

Tesla's Q2 2022 saw significant progress despite challenges like Shanghai shutdowns. The company achieved a 14.6% operating margin, $621M free cash flow, and record vehicle production month. New factories in Berlin-Brandenburg and Austin continued to ramp up, with Gigafactory Berlin-Brandenburg achieving positive gross margin.

  • Achieved an operating margin of 14.6%, among the highest in the industry.
  • Generated positive free cash flow of $621M.
  • Reached the highest vehicle production month in the company's history.
  • Gigafactory Berlin-Brandenburg achieved positive gross margin.

Headline financials

Total Revenue

$16.9B

Previous: $12B+41.6%
EPS (adj)

$0.76

Previous: $0.48+58.3%
Gross Margin

27.9%

Previous: 28.4%-1.8%
Operating Margin

14.6%

Previous: 11.0%+32.7%
Operating Cash Flow

$621M

Previous: $1.00+62099999900.0%
Capital Expenditures

-$3.5B

Previous: -$2.85B-22.6%
Free Cash Flow

-$1.24B

Previous: -$1.71B+27.6%
Net Income

$2.26B

Previous: $1.14B+97.8%
Operating Income

$2.46B

Previous: $1.31B+87.8%
Gross Profit

$4.23B

Previous: $2.88B+46.8%
Cash & Equivalents

$18.3B

Previous: $16.2B+12.9%
Total Assets

$68.5B

Previous: $55.1B+24.2%
Stock-Based Comp

$361M

Previous: $474M-23.8%

Revenue & EPS history

Tesla · Revenue · Quarterly

$16.9B

Q2 2022+41.6%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Tesla · $23.4B total across 5 segments · Q3 2023

  • Automotive Sales
    $18.6B
  • Services & Other
    $2.17B
  • Energy & Storage
    $1.56B
  • Regulatory Credits
    $554M
  • Automotive Leasing
    $489M

Forward guidance

Tesla plans to grow manufacturing capacity as quickly as possible, expecting 50% average annual growth in vehicle deliveries over a multi-year horizon. The pace of production ramps in Austin and Berlin-Brandenburg will be influenced by new technologies and supply chain challenges. Cybertruck production is planned for Austin subsequent to Model Y ramp.

Tailwinds

  • Plan to grow manufacturing capacity as quickly as possible.
  • Expect to achieve 50% average annual growth in vehicle deliveries over a multi-year horizon.
  • Have sufficient liquidity to fund product roadmap, long-term capacity expansion plans and other expenses.
  • Expect hardware-related profits to be accompanied with an acceleration of software-related profits.
  • Making progress on the industrialization of Cybertruck, which is currently planned for Austin production subsequent to Model Y ramp.

Headwinds

  • Rate of growth will depend on equipment capacity, factory uptime, operational efficiency and the capacity and stability of the supply chain.
  • Pace of production ramps in Austin and Berlin-Brandenburg will be influenced by the successful introduction of many new product and manufacturing technologies in new locations and ongoing supply chain related challenges.
  • Factory ramps take time, and Gigafactory Austin and Gigafactory Berlin-Brandenburg will be no different.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.1%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+2.5%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+25.1%

Q1 2013

Best reaction

-14.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-5.9%-3.0%+10.0%
Q1 2026+0.5%-3.0%+10.0%
Q3 2025+3.6%+4.9%-10.9%
Q2 2025-8.2%-3.4%+2.2%
Q1 2025+5.4%+20.1%+42.6%
Q4 2024+2.9%+0.8%-24.7%
Q3 2024+19.5%+20.4%+61.7%
Q2 2024-14.1%-12.6%-16.2%
Q1 2024+14.1%+18.5%+22.3%
Q4 2023-12.7%-8.7%-8.2%
Q3 2023-13.6%-16.8%-8.1%
Q2 2023-10.4%-8.3%-26.5%
Q1 2023-11.6%-11.8%-2.3%
Q4 2022+11.4%+15.8%+36.8%
Q3 2022-5.9%-4.1%-18.2%
Q2 2022+10.7%+9.3%+20.8%
Q1 2022-1.9%-2.9%-35.4%
Q4 2021-9.7%+2.0%-11.8%
Q3 2021+3.4%+18.6%+31.6%
Q2 2021+0.2%+6.8%+10.5%
Q1 2021-3.4%-2.7%-15.1%
Q4 2020-5.4%-4.9%-23.5%
Q3 2020+0.9%-0.4%+16.0%
Q2 2020-3.5%-1.8%+30.7%
Q1 2020+1.7%-1.0%+8.6%
Q4 2019+13.0%+37.6%+17.8%
Q3 2019+17.3%+28.2%+30.3%
Q2 2019-12.1%-9.4%-18.7%
Q1 2019-6.1%-8.5%-27.8%
Q4 2018+3.2%+5.2%-0.9%
Q3 2018+7.0%+13.8%+10.8%
Q2 2018+17.2%+14.7%+1.2%
Q1 2018-5.2%+1.0%-2.7%
Q4 2017-5.6%-5.5%-2.0%
Q3 2017-9.7%-8.7%-7.5%
Q2 2017+8.6%+11.1%+11.2%
Q1 2017-7.3%-3.7%+6.6%
Q4 2016-7.7%-11.2%-5.1%
Q3 2016+0.8%-2.3%-2.8%
Q2 2016+1.5%-0.5%-12.9%
Q1 2016-9.0%
Q4 2015+1.5%
Q3 2015+8.4%
Q2 2015-7.5%
Q1 2015+1.7%
Q4 2014-6.2%
Q3 2014+0.9%
Q2 2014+1.9%
Q1 2014-13.8%
Q4 2013+3.1%
Q3 2013-13.7%
Q2 2013+7.9%
Q1 2013+25.1%
Q4 2012+2.0%
Q3 2012+0.5%
Q2 2012+4.0%
Q1 2012-1.6%
Q4 2011-1.6%
Q3 2011+0.9%
Q2 2011+3.6%
Q1 2011-3.8%
Q4 2010+3.7%
Q3 2010+9.6%
Q2 2010+6.8%
Q1 2010

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