The US continues to be Tesla's largest market, generating ~48% of its revenue in Q3 2022. At the same time, China brought in ~24% and all other markets combined made up ~28%.
Tesla's total revenue in the third quarter was $21.45 billion, and its distribution among sales markets is of particular interest. Understanding this gives a general idea of which countries and regions are the largest markets for the company and bring it the most benefits.
According to the Form 10-Q filed Monday, Tesla received $10.236 billion of its revenue from the US market in Q3 2022. This equates to a 47.73% share and indicates that the US remains the largest market for the manufacturer. Clearly, sales there are limited by Tesla's production capacity at the moment and could increase significantly if Giga Texas goes into active production. If the factory can do this before Giga Berlin in Europe, then we could see further revenue growth in the US market. It is worth noting that in Q3 2022, the Fremont factory produced more vehicles than before and set a new record.
$5.13 billion of revenue generated came from China. This corresponds to an impressive share of 23.92% of total revenue for the quarter, up 64.82% from the same period last year. China is a very large market for Tesla and its importance will continue to grow in Q4. On Monday, the manufacturer announced a reduction in the cost of its cars in China, which will be a strong catalyst for demand growth. There are several reasons why the company took this step, and reducing the load on logistics is one of them. It is important to understand that the price decline was not due to a decrease in demand in the country, so one should not be influenced by opinions in this regard from TSLA short sellers, whose only goal is to reduce the value of the manufacturer's shares in order to profit from it.
Tesla's revenue from all other regions combined was $6.09 billion, or 28.35%. As the production capacity of Tesla's European factory grows, revenues there may increase. However, this will be possible if the increase in production at Giga Berlin is faster than at other factories.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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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.