Tesla Inc (NASDAQ: TSLA) reported Adj EPS (non-GAAP) of US $2.27, and revenue of US $16.934 billion for Q2 2022. After Tesla trading officially closed on July 20, 2022, the company released its Shareholder Letter before its Q2 2022 Earnings Call. Tesla management will hold a live question and answer webcast today at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss the Company’s financial and business results and outlook.
- Operating cash flow less capex (free cash flow) of $621M in Q2
- In total, $0.8B increase in our cash and cash equivalents in Q2 to $18.3B
- $2.5B GAAP operating income; 14.6% operating margin in Q2
- $2.3B GAAP net income; $2.6B non-GAAP net income (ex-SBC 1 ) in Q2
- 27.9% GAAP Automotive gross margin in Q2
- More than 1,000 vehicles produced in a single week at Gigafactory Berlin
- Highest solar deployment in over four years
Total revenue grew 42% YoY in Q2 to $16.9B. YoY, revenue was impacted by the following items:
+ growth in vehicle deliveries
+ increased average selling price (ASP)
+ growth in other parts of the business
Tesla's operating income improved YoY to $2.5B in Q2, resulting in a 14.6% operating margin. YoY, operating income was primarily impacted by the following items:
+ increased ASP
+ growth in vehicle deliveries
+ profit growth in other parts of the business
+ lower stock-based compensation expense
- higher raw material, commodity, logistics and expedite costs
- higher per unit fixed costs in Shanghai due to shutdowns
- negative FX impact
- Bitcoin impairment
Quarter-end cash, cash equivalents and short-term marketable securities increased sequentially by $902M to $18.9B in Q2, driven mainly by free cash flow of $621M, partially offset by debt repayments of $402M. As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.