Tesla released earnings last night and the performance was above what investors estimated. Once again, Elon and Tesla have surprised the financial world.

Q1 2022

  • Revenue: $18.75B, up 81% YOY
  • Total Gross Profit: $5.4B, up 147% YOY
  • Total Production: 305,407, up 69% YOY
  • Total Deliveries: 310,048, up 68% YOY

Growth in vehicle deliveries and increased selling price helped boost revenues. Profitability was helped by a decrease in raw materials, commodity and logistic costs.

Quarter-end cash, cash equivalents and short-term marketable securities increased sequentially by $0.3B to $18.0B in Q1, driven mainly by free cash flow of $2.2B, partially offset by debt repayments of $2.1B.

Outlook

Tesla plan to grow their manufacturing capacity as quickly as possible. Over a multi-year horizon, they expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on their equipment capacity, operational efficiency and the capacity and stability of the supply chain. Factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022.

Positive from Elon and Co

The numbers once again beat expectations in a quarter that had a very high bar to beat. The price had sold off in the run up to earnings (down 4.96% on the day) but is now up 7.4% in pre-market trading hours.

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