10-QPeriod: Q2 FY2022

Tesla, Inc. Quarterly Report for Q2 Ended Jun 30, 2022

Filed July 25, 2022For Securities:TSLA

Summary

Tesla, Inc. (TSLA) reported its second-quarter 2022 financial results, showcasing significant year-over-year growth in both revenue and profitability. Total revenues surged by 42% to $16.93 billion, driven primarily by a strong performance in the automotive segment, which saw a 43% increase in revenue. This growth was fueled by higher vehicle deliveries of Model 3 and Model Y, as well as the ramp-up of production at new Gigafactories in Berlin and Texas. Net income attributable to common stockholders more than doubled to $2.26 billion ($2.18 per diluted share), up from $1.14 billion ($1.02 per diluted share) in the same quarter last year. This substantial increase in profitability reflects improved operational efficiencies and higher sales volumes, even amidst ongoing supply chain challenges and inflationary pressures. The company maintained a strong liquidity position, ending the quarter with $18.32 billion in cash and cash equivalents, and generated robust operating cash flow, underscoring its financial health and capacity for continued investment in growth initiatives.

Financial Highlights

52 data points
Beta

Revenue

$16.93B

25.0% Gross Margin

Net Income

$2.26B

13.3% Net Margin

EPS (Diluted)

$0.65

Total Assets

$68.51B

Cash & Equivalents

$18.32B

Free Cash Flow

$621.00M

Financial Statements
Beta
Revenue$16.93B
Cost of Revenue$12.70B
Gross Profit$4.23B
R&D Expenses$667.00M
SG&A Expenses$961.00M
Operating Expenses$1.77B
Operating Income$2.46B
Interest Expense$44.00M
Net Income$2.26B
EPS (Basic)$0.73
EPS (Diluted)$0.65
Shares Outstanding (Basic)3.11B
Shares Outstanding (Diluted)3.46B

Key Highlights

  • 1Total revenues increased by 42% year-over-year to $16.93 billion.
  • 2Automotive segment revenue grew by 43% year-over-year, driven by higher vehicle deliveries.
  • 3Net income attributable to common stockholders more than doubled to $2.26 billion.
  • 4Diluted earnings per share (EPS) rose to $1.95, compared to $1.02 in the prior year's second quarter.
  • 5Gross margin improved to 25.0% from 24.1% in the prior year's second quarter.
  • 6The company ended the quarter with a strong cash position of $18.32 billion.
  • 7Cash flow from operations for the six months ended June 30, 2022, was $6.35 billion, a significant increase from $3.77 billion in the prior year.

Frequently Asked Questions

Tesla's revenue growth in Q2 2022 was primarily driven by a significant increase in automotive sales revenue, up 44% year-over-year, due to higher cash deliveries of Model 3 and Model Y vehicles. The ramp-up of new production facilities, including Gigafactory Berlin-Brandenburg and Gigafactory Texas, also contributed to this growth. Automotive leasing and services and other revenue also saw substantial increases.

Tesla's profitability saw a substantial improvement. Net income attributable to common stockholders increased by $1.12 billion to $2.26 billion in Q2 2022, compared to $1.14 billion in Q2 2021. Diluted earnings per share rose to $1.95 from $1.02 in the same period. This was supported by increased revenues and a slight improvement in gross margin to 25.0%.

Tesla maintained a strong liquidity position, ending Q2 2022 with $18.32 billion in cash and cash equivalents. The company generated $6.35 billion in cash flow from operating activities during the first six months of 2022, a significant increase from the prior year. This robust operating cash flow allows Tesla to fund its ongoing operations, capital expenditures, and investments in future growth initiatives.

Tesla continued to navigate ongoing global supply chain challenges, including semiconductor shortages and intermittent supplier delays, as well as inflationary pressures impacting raw material and labor costs. The company also faced temporary manufacturing shutdowns, such as at Gigafactory Shanghai due to COVID-19 spikes, which incurred idle capacity charges.