Tesla (TSLA) earnings Q1 2022

Tesla simply reported first-quarter earnings for 2022 and beat analysts’ expectations on the highest and backside strains. Listed here are the important thing numbers.

• Earnings per share: $3.22 vs $2.26 anticipated
• Income: $18.76 billion vs $17.80 billion anticipated

Shares rose as excessive as 6% in after-hours buying and selling.

Automotive income reached $16.86 billion, up 87% from the identical interval final yr. Automotive gross margins jumped to a report 32.9% with Tesla reporting gross revenue of $5.54 billion in its principal section. Regulatory credit accounted for $679 million of automotive income for the quarter.

Income development was pushed partly by a rise within the variety of automobiles Tesla delivered, and a rise in common gross sales costs, the corporate stated in its shareholder deck.

Early this month, Tesla reported automobile deliveries of 310,048 for the primary quarter, the closest approximation of gross sales disclosed by the corporate. Mannequin 3 and Mannequin Y automobiles comprised 95%, or 295,324, of deliveries within the interval ending March 31, 2022.

On the corporate’s earnings name, CFO Zachary Kirkhorn and CEO Elon Musk stated that Tesla stays assured that it might probably develop at the very least 50% over 2021 numbers. Nonetheless, the execs famous that the corporate has misplaced a couple of month of “construct quantity” in Shanghai as a result of Covid-related shutdowns.

“Manufacturing is resuming at restricted ranges, and we’re working to get again to full manufacturing as shortly as potential,” Kirkhorn stated.

Regardless of this slowdown, Musk stated, “It appears seemingly that we’ll have the ability to produce one and a half million automobiles this yr.” He cautioned that prospects ordering now are going through a protracted waitlist, and a few of their orders will not arrive till subsequent yr.

Musk additionally acknowledged that autonomous driving advances have been taking longer than he anticipated.

“With respect to full-self driving, of any expertise improvement I’ve ever been concerned in, I’ve by no means actually seen extra form of false dawns the place it looks like we’ll break via however we do not.” He inspired individuals to hitch Tesla’s FSD Beta program, which requires Tesla homeowners to purchase or subscribe to Tesla’s FSD premium driver help bundle first, then obtain a excessive driver security rating. (FSD, which prices $12,000 up entrance or $199 a month, doesn’t make Tesla automobiles absolutely autonomous.)

Musk declined to present particulars on a “futuristic” robotaxi that he stated the corporate was now engaged on in early April. Tesla will maintain a robotaxi occasion subsequent yr, he stated, and is “aiming for quantity manufacturing in 2024.”

In its power section, Tesla’s photo voltaic deployments dropped by almost half to 48 MW within the first quarter of 2022 versus the identical time final yr. The corporate deployed 846 MWh of lithium ion primarily based battery power storage programs, up 90% from the identical time final yr, however down from the earlier quarter.

The corporate stated declines in photo voltaic deployments have been attributable to import delays on sure elements that have been past Tesla’s management.

Amid inflationary pressures, components and semiconductor chip shortages exacerbated by the continued pandemic and Russia’s brutal invasion of Ukraine, Tesla world automobile stock dwindled to a three-day provide within the first quarter of 2022. That is down from a four-day provide of world automobile stock within the earlier quarter, and eight-day provide through the first quarter of 2021.

“Our personal factories have been working beneath capability for a number of quarters,” Tesla stated in its shareholder deck. The corporate didn’t give detailed steerage on deliveries going ahead, however stated it expects 50% annual development on a multi-year foundation, and warned that offer chain constraints are more likely to proceed via 2022. Musk additionally stated that he believes inflation is worse than reported, and can proceed via the yr.