Gary Zhou 
Tesla (NASDAQ:TSLA) posted its Q4 and FY 2022 earnings report after markets closed today. The results, which were discussed in the Q4 and FY 2022 Update Letter, were released after the closing bell on Wednesday, January 25, 2023.
The last year was challenging for Tesla, but it was a year that saw the electric vehicle maker reach new heights. Overall, Tesla produced over 439,000 vehicles and delivered over 405,000 in the fourth quarter. Vehicle deliveries grew 40% year-over-year to 1.31 million units, while production grew 47% year-over-year to 1.37 million cars. These were both records for the EV maker.
The following is a quick overview of Tesla’s Q4 and FY 2022 results.
REVENUE
Tesla posted total revenues of $24.318 billion, a 37% YoY growth, with a gross profit of $5.777 billion in the fourth quarter. This represents the highest quarterly revenue for the company to date. In comparison, analysts expected Tesla to post revenue of about $23.6 billion in Q4 2022.
PROFITABILITY
Tesla’s operating income improved year-over-year to $3.9 billion in the fourth quarter. This resulted in a 16% operating margin year-over-year.
EARNINGS PER SHARE
Tesla posted non-GAAP earnings per share of $1.19 per share in Q4 2022. In comparison, analysts were expecting Tesla to post earnings per share of $1.13 per share during the fourth quarter.
MARGINS
Automotive gross margins were at 25.9%, which is still impressive but slightly lower than expectations, which were at 26.4%.
CASH
Tesla’s quarter-end cash, cash equivalents, and investments reached $22.2 billion in the fourth quarter. As per the company’s Q4 and FY Update Letter, this was driven mainly by free cash flow of $1.4 billion and offset by debt repayments of $497 million.
FY 2022 RESULTS
For 2022, Tesla’s total automotive revenues were at $71.462 billion, of which $1.776 billion were regulatory credits. Automotive gross profit is at $20.354 billion, and automotive gross margins are at an impressive $28.5%.
Total revenues are at $80.462 billion, with total gross profit for 2022 at $20.853 billion. Total GAAP gross margin for 2022 is at 25.6%.
OUTLOOK
Tesla is still aiming high for 2023, with the company stating that it expects to remain ahead of the long-term 50% CAGR with about 1.8 million cars for the year. The company also highlighted that it has enough liquidity to fund its future product roadmap, long-term capacity expansion plans, and other expenses.
Tesla also noted that it expects its hardware-related profits to be accompanied with an acceleration of software-related profits. The company noted that it believes it can still have the highest operating margin among volume OEMs.
As for future projects, the Tesla Cybertruck is still on track to start production this year at Gigafactory Texas, and details of the next-gen vehicle platform being shared on Investor Day this coming March 1, 2023.
Tesla’s Q4 and FY 2022 Update Letter can be viewed here.
