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Jun 30, 2022
Tesla Q2 2022 Earnings Report
Tesla achieved high operating margin, positive free cash flow, and record vehicle production despite challenges.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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