Photo: Patrick Pleul/Pool
Tesla continued to grow its business across the board and ramped up production in Q3, and expects strong results in Q4. With a strong growth trajectory, Elon Musk is confident that the company is in for “an epic end of [the] year.”
For Tesla, Q3 2022 was another record quarter in many ways. The company's industry-leading operating margin reached 17% and free cash flow exceeded $3 billion and approached $9 billion over the past 12 months. As Tesla's factories around the world ramp up, the company is looking forward to a record-breaking Q4. Elon Musk is very excited about Tesla's success and sees great growth potential, which is why he said he sees “an epic end of [the] year” for the company.
“As our factories ramp, we're looking forward to a record-breaking Q4. So it really, knock on wood, looks like we'll have an epic end of [the] year. So, Q4 is looking extremely good.”
Musk talked about the current achievements of the manufacturer. Giga Berlin reached another milestone in September: production of 2,000 vehicles per week. It should be kept in mind that all produced cars are of very good quality, which is an important indicator. He said the ramp-up is going well, which could also give hope for the factory's strong Q4 output.
Although as of October 19, Giga Texas has not yet reached a production target of 2,000 vehicles per week, Musk said that this should happen very soon, probably referring to the next week or so. He said that on October 18 the company “extrapolated yesterday's build rate, it would be 2,000.” Production at the Fremont factory and Giga Shanghai is solid and strong, so Q4 results should be very good.
In addition to making cars, Tesla is also making headway in manufacturing its new 4680 battery cells. Musk said their production tripled in Q3 from the previous quarter. He said output is growing rapidly and the company expects these cells to become used in vehicles and become a significant part of Texas production in the coming months, which means it could have a positive impact on Q4 and 2022 results. This will be made possible by Tesla's second-generation 4680 cell manufacturing facility in Texas, which continues to make great progress along with its pilot line in Fremont.
Musk stressed that despite all the concerns expressed by investors and analysts, demand for Tesla cars remains high. He expressed his confidence that the company will be able to sell every car it produces as far into the future as the manufacturer can see. Musk said the factories are running at full capacity and the company delivers every car it makes and maintains a high operating profit. Tesla currently has about 3.5 million vehicles on the road.
“Let's see, with respect to demand. We've got a lot of questions about demand in recent weeks. I can't emphasize enough, we have excellent demand for Q4, and we expect to sell every car that we make for as far into the future as we can see.”
© 2022, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
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.