Tesla TSLA Reports Q4 2022 EPS of $1.19, Beating Estimate, Record Production of Nearly 440K Units

Tesla Inc (NASDAQ: TSLA)reported quarterly earnings of $1.19 per share which beat the analyst consensus estimate of $1.13 by 5.31 percent. This is a 40 percent increase over earnings of $0.85 per share from the same period last year. The company reported quarterly sales of $24.32 billion which beat the analyst consensus estimate of $24.03 billion by 1.20 percent. This is a 37.24 percent increase over sales of $17.72 billion in the same period last year. 

After Tesla trading officially closed on January 25, 2022, the company released its Earnings Report before its Q4 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

Profitability

• 16.8% operating margin in 2022; 16.0% in Q4
• $13.7B GAAP operating income in 2022; $3.9B in Q4
• $12.6B GAAP net income in 2022; $3.7B in Q4
• $14.1B non-GAAP net income1 in 2022; $4.1B in Q4

Cash

• Operating cash flow of $14.7B; free cash flow2 of $7.6B in 2022
• Operating cash flow of $3.3B; free cash flow of $1.4B in Q4
• $1.1B increase in our cash and investments3 in Q4 to $22.2B

Operations

• 6.5 GWh of energy storage deployed in 2022, up 64% YoY
• Record vehicle deliveries of 1.31 million in 2022

FINANCIAL SUMMARY

Revenue
Total revenue grew 37% YoY in 04 to $243B. YoY, revenue was impacted by the following items:
+ growth in vehicle deliveries
+ growth in other parts of the business
+ increase in ASP YoY (excluding FX impact), including favorable impact of model and regional mix
- negative FX impact of $1.4B

Profitability
Our operating income improved YoY to $39B in Q4, resulting in a 16.0% operating margin. YoY, operating income was primarily impacted by the following items:
+ growth in ASP (excluding FX) and vehicle deliveries (despite margin headwind from underutilization of new factories)
+ gross profit growth in other parts of the business
+ FSD revenue recognition of $324M in Automotive Sales2
+ lower stock-based compensation and payroll tax expense related to CEO awards
- higher raw material, commodity, logistics and warranty costs
- cost of production ramp of 4680 cells
- negative FX impact of over $300M

Cash
Quarter-end cash, cash equivalents and investments increased sequentially by $1.1B to $22.2B in Q4. driven mainly by free cash flow of $1.4B. partially offset by debt repayments of $497M.

© 2023, 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.