Tesla TSLA Reports Q2 2022 Earnings Results: $2.27 EPS & Revenue of $16.934B

by Eva Fox July 20, 2022

Tesla TSLA Reports Q2 2022 Earnings Results: $2.27 EPS & Revenue of $16.934B

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.

HIGHLIGHTS

Cash

  • 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


Profitability

  • $2.5B GAAP operating income; 14.6% operating margin in Q2
  • $2.3B GAAP net income; $2.6B non-GAAP net income (ex-SBC1) in Q2
  • 27.9% GAAP Automotive gross margin in Q2


Operations

  • More than 1,000 vehicles produced in a single week at Gigafactory Berlin
  • Highest solar deployment in over four years
FINANCIAL SUMMARY

Revenue
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

Profitability
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

Cash
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

    © 2022, Eva Fox | Tesmanian. All rights reserved.

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    This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

    Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.








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