Tesla Q2 2022 Earnings Report
Key Takeaways
Tesla's Q2 2022 saw significant progress despite challenges like Shanghai shutdowns. The company achieved a 14.6% operating margin, $621M free cash flow, and record vehicle production month. New factories in Berlin-Brandenburg and Austin continued to ramp up, with Gigafactory Berlin-Brandenburg achieving positive gross margin.
Achieved an operating margin of 14.6%, among the highest in the industry.
Generated positive free cash flow of $621M.
Reached the highest vehicle production month in the company's history.
Gigafactory Berlin-Brandenburg achieved positive gross margin.
Tesla
Tesla
Forward Guidance
Tesla plans to grow manufacturing capacity as quickly as possible, expecting 50% average annual growth in vehicle deliveries over a multi-year horizon. The pace of production ramps in Austin and Berlin-Brandenburg will be influenced by new technologies and supply chain challenges. Cybertruck production is planned for Austin subsequent to Model Y ramp.
Positive Outlook
- Plan to grow manufacturing capacity as quickly as possible.
- Expect to achieve 50% average annual growth in vehicle deliveries over a multi-year horizon.
- Have sufficient liquidity to fund product roadmap, long-term capacity expansion plans and other expenses.
- Expect hardware-related profits to be accompanied with an acceleration of software-related profits.
- Making progress on the industrialization of Cybertruck, which is currently planned for Austin production subsequent to Model Y ramp.
Challenges Ahead
- Rate of growth will depend on equipment capacity, factory uptime, operational efficiency and the capacity and stability of the supply chain.
- Pace of production ramps in Austin and Berlin-Brandenburg will be influenced by the successful introduction of many new product and manufacturing technologies in new locations and ongoing supply chain related challenges.
- Factory ramps take time, and Gigafactory Austin and Gigafactory Berlin-Brandenburg will be no different.