Tesla TSLA Reports Q3 2022 Earnings Results: $1.05 EPS & Revenue of $21.45B

Tesla Inc (NASDAQ: TSLA) reported Adj EPS (non-GAAP) of US $1.05, and revenue of US $21.45 billion for Q3 2022. After Tesla trading officially closed on October 19, 2022, the company released its Earnings Report before its Q3 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 $3.3B in Q3
• $2.2B increase in our cash and marketable securities' in Q3 to $21.1B

Profitability

• $3.7B GAAP operating income; 17.2% operating margin in Q3
• $3.3B GAAP net income; $3.7B non-GAAP net income (ex-SBC2) in Q3
• 27.9% GAAP Automotive gross margin in Q3

Operations

• Record Energy Storage deployments of 2.1 GWh in Q3
• Initiated transition to smoother delivery and production mix

FINANCIAL SUMMARY

Revenue

Total revenue grew 56% YoY in 03 to $21.58. YoY. revenue was impacted by the following items:
+ growth in vehicle deliveries
+ increased ASP YoY; ASP declined sequentially as the prior quarter’s ASP was driven by limited Shanghai production in Q2
+ growth in other parts of the business
- negative FX impact

Profitability

Our operating income Improved YoY to $3.78 in 03, resulting in a 172% 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
- higher raw material, commodity, logistics, warranty and expedite costs
- negative FX impact of ~$250M
- cost of production ramp at Gigafactory Texas and Berlin-Brandenburg and ramp of 4680 cells (material margin impact,
smaller profit impact)

Cash

Quarter-end cash, cash equivalents and short-term marketable securities increased sequentially by $2.28 to $21.1B in Q3, driven mainly by free cash flow of $3.38, partially offset by debt repayments of $0.98.

© 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.