Tesla Financial Report: Tesla's revenue in Q3 2022 was US$21.454 billion, and its net profit increased by 103% year-on-year

Tesla Motors recently released the company's third-quarter financial report for fiscal year 2022. The report shows that Tesla Motors' total revenue in the third quarter was US$21.454 billion, a 56% increase from US$13.757 billion in the same period last year, and US$16.934 billion in the previous quarter; net profit attributable to common shareholders was US$3.292 billion, a 103% increase from US$1.618 billion in the same period last year, and net profit attributable to common shareholders in the previous quarter was US$2.259 billion.

Tesla Motors' third-quarter adjusted earnings per share exceeded Wall Street analysts' expectations, but revenue fell short of expectations, causing its stock price to fall more than 3% after the market closed.

Third quarter results summary:

In the quarter ended September 30, Tesla's net profit attributable to common shareholders was $3.292 billion, up 103% from $1.618 billion in the same period last year, and $2.259 billion in the previous quarter. Tesla's third-quarter earnings per share attributable to common shareholders were $0.95, up 98% from $0.48 per share attributable to common shareholders in the same period last year, and $0.65 per share attributable to common shareholders in the previous quarter.

Excluding certain one-time items (not in accordance with US GAAP), Tesla's adjusted net income attributable to common shareholders in the third quarter was $3.654 billion, up 75% from $2.093 billion in the same period last year, and $2.620 billion in the previous quarter. Excluding certain one-time items (not in accordance with US GAAP), Tesla's adjusted earnings per share attributable to common shareholders in the third quarter was $1.05, up 69% from $0.62 in the same period last year, and $0.76 in the previous quarter, which exceeded analysts' previous expectations. According to data provided by Yahoo Finance, 26 analysts had previously expected Tesla's adjusted earnings per share in the third quarter to reach $0.99.

Tesla's third-quarter total revenue was $21.454 billion, up 56% from $13.757 billion in the same period last year and $16.934 billion in the previous quarter. This performance failed to meet analysts' expectations. According to data provided by Yahoo Finance, 25 analysts had expected Tesla's third-quarter revenue to reach $21.96 billion on average.

Tesla Motors' operating profit in the third quarter was $3.688 billion, up 84% from $2.004 billion in the same period last year, and $2.464 billion in the previous quarter. Tesla Motors' operating profit margin in the third quarter was 17.2%, up 262 basis points from 14.6% in the same period last year, and also 14.6% in the previous quarter.

Tesla Motors' adjusted EBITDA (net profit before interest, taxes, depreciation and amortization) in the third quarter was $4.968 billion, up 5% from $3.203 billion in the same period last year, and $3.791 billion in the previous quarter. Tesla Motors' adjusted EBITDA margin in the third quarter was 23.2%, down 13 basis points from 23.3% in the same period last year, and 22.4% in the previous quarter.

Performance of each department:

Tesla's total revenue from the automotive business in the third quarter was $18.692 billion, up 55% from $12.057 billion in the same period last year, and $14.602 billion in the previous quarter.

– Revenue from automobile sales was $17.785 billion, compared to $11.393 billion in the same period last year and $13.670 billion in the previous quarter;

Revenue from automotive regulatory credits was $286 million, compared to $279 million in the same period last year and $344 million in the previous quarter.

- Revenue from car rental business was $621 million, compared with $385 million in the same period last year and $588 million in the previous quarter.

– The automotive business’ gross profit for the quarter was $5.212 billion, up 42% from $3.673 billion in the same period last year, and $4.081 billion in the previous quarter. The automotive business’ gross margin for the quarter was 27.9%, down 258 basis points from 30.5% in the same period last year, and also 27.9% in the previous quarter.

Tesla Motors' third-quarter revenue from power generation and energy storage businesses was $1.117 billion, compared with $806 million in the same period last year and $866 million in the previous quarter.

Tesla Motors' third-quarter revenue from services and other businesses was $1.645 billion, compared with $894 million in the same period last year and $1.466 billion in the previous quarter.

Production and delivery data:

Tesla's total vehicle production in the third quarter was 365,923, up 54% from 237,823 in the same period last year. Among them, the production of Model S and Model X was 19,935, up 123% from 8,941 in the same period last year; the production of Model 3 and Model Y was 345,988, up 51% from 228,882 in the same period last year.

Tesla Motors delivered a total of 343,830 vehicles in the third quarter, up 42% from 241,391 vehicles in the same period last year. Among them, the delivery volume of Model S and Model X was 18,672, up 101% from 9,289 vehicles in the same period last year; the delivery volume of Model 3 and Model Y was 325,158, up 40% from 232,102 vehicles in the same period last year.

Costs and expenses:

Tesla Motors' total revenue costs in the third quarter were $16.072 billion, compared with $10.097 billion in the same period last year.

– Cost of revenue from automobile sales was $13.099 billion, compared to $8.150 billion in the same period last year;

- Car rental business revenue costs were $381 million, compared with $234 million in the same period last year;

– Overall operating costs for the automotive business were $13.48 billion, compared to $8.384 billion in the same period last year;

– Power Generation and Storage revenue costs were $1.013 billion, compared to $803 million in the same period last year;

– Cost of revenue from services and other businesses was $1.579 billion, compared with $910 million in the same period last year.

Tesla Motors' total operating expenses in the third quarter were $1.694 billion, compared with $1.656 billion in the same period last year. Among them, R&D expenses were $733 million, compared with $611 million in the same period last year; sales, general and administrative expenses were $961 million, compared with $994 million in the same period last year.

Cash Flow and Capital Expenditures:

Tesla Motors' net cash from operating activities in the third quarter was $5.10 billion, compared with $3.147 billion in the same period last year, an increase of 62% year-on-year.

Tesla Motors' capital expenditures in the third quarter were $1.803 billion, down 1% from $1.819 billion in the same period last year.

Tesla Motors' free cash flow in the third quarter was $3.297 billion, up 148% from $1.328 billion in the same period last year.

As of the end of the third quarter, Tesla Motors held total cash and cash equivalents of US$21.107 billion, an increase of 31% from US$16.095 billion as of the end of the third quarter of 2021.

Outlook:

Tesla said it plans to expand its manufacturing capacity as soon as possible. In the next few years, vehicle deliveries are expected to grow by an average of 50% per year, and the growth rate will depend on equipment capabilities, factory uptime, operational efficiency, and the capacity and stability of the supply chain.

Tesla said it has sufficient liquidity to fund its product roadmap, long-term capacity expansion plans and other expenses.

Tesla said it is continuing to execute on innovative plans to reduce manufacturing and operating costs and that over time it expects software-related profits to grow faster in addition to hardware-related profits.

Tesla said that the speed of capacity expansion at the Texas and Berlin-Brandenburg plants in Germany will be affected by the successful launch of many new products, and will be affected by the manufacturing technology of the new plants and ongoing supply chain-related challenges. The company pointed out that it takes time for factories to increase their production capacity, and the Texas and Berlin-Brandenburg plants in Germany are no exception. Tesla also said that it is making progress in the industrialization of Cybertruck, and currently plans to produce this model in Texas, but first it needs to increase the production capacity of the Model Y model at the plant. In addition, the initial phase of Tesla Semi models will start in December 2022.

Stock price changes:

On the same day, Tesla Motors' stock price rose by $1.85 in regular trading on the Nasdaq, closing at $222.04, an increase of 0.84%. In the subsequent after-hours trading that ended at 5:48 p.m. Eastern Time on Wednesday (5:48 a.m. Beijing Time on Thursday), Tesla Motors' stock price fell by $6.93 to $215.11, a drop of 3.12%. In the past 52 weeks, Tesla Motors' highest price was $414.50 and its lowest price was $204.16.