Tesla reports record revenue for 2022, 1.31 million electric vehicles sold

Tesla reports record revenue for 2022, 1.31 million electric vehicles sold

Tesla ended 2022 on a tear, buoyed by recent price cuts for its stable of electric sedans and SUVs. The automaker’s full-year 2022 earnings statement, released at market close on Wednesday, revealed it delivered 405,278 electric cars in the fourth quarter, up from 343,830 deliveries in the third quarter. This brings Tesla’s total deliveries in 2022 to 1.31 million cars, representing a record for the brand and growth of 40% year-over-year, but also slightly below its own target of 1.4 million. of deliveries.

In Tesla’s earnings release, it notes that the average selling price of its vehicles “has been on a generally downward trajectory for many years.” The automaker cut prices by as much as 20% on its lineup of electric cars late last year, a move driven in part by reduced demand, but also to keep the Model 3 and Model Y below of the $55,000 qualifying limit for the $7,500 federal electric sedan tax. credit included in last year Inflation Reduction Law.

Read more: What Biden’s Proposed EV Charging Standards Mean

Investors weren’t too happy about the price cuts, but Elon Musk spins more affordable Teslas as a good thing.

“It’s always been our goal to make cars affordable for as many people as possible,” the Tesla CEO said on a call with investors, “so I’m glad we can do that.”

The automaker reports that the median selling price of a Tesla has halved between 2017 and 2022, and will likely continue to fall. That’s partly due to price drops, but mostly thanks to the less expensive Model 3 and Y that now account for the bulk of Tesla’s production and deliveries. In 2018, they only accounted for just over half of Tesla’s 254,530 sales; today they are about 95% of the 1.31 million Tesla cars sold in 2022.

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This week, Tesla announced a multi-million dollar investment to expand its Nevada Gigafactory.

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Despite the declining average transaction price, Tesla says it has improved its operating margins from negative 14% to positive 17% over the period 2017 to 2022, and attributes the same change to models that cost less to produce, as well as your investment. in localized and more efficient factories. Earlier this week, Tesla announced a new $3.6 billion investment in its Nevada Gigafactory, adding two new factories to the facility: a 100 GWh factory will support enough production from its 4,680 cells for up to 1.5 million light-duty electric vehicles a year. Meanwhile, a large volume Semi The factory will eventually produce Tesla’s all-electric commercial truck.

Tesla also projects that software-related profit, after-sales and services will offset some of the slack from lower transaction prices. “While we continue to execute innovations to reduce the cost of manufacturing and operations,” the investor platform states, “over time, we expect our hardware-related gains to be accompanied by an acceleration of software-related gains.”

Last year, Tesla also launched its full autonomous driving beta to around 400,000 customers in the US and Canada who paid for the driver assistance software and while that launch was not without controversy, it is an important step in the automaker’s plan to accelerate its driver-related profits. software. FSD is, as of a September 2022 price increase, a $15,000 add-on on top of the cost of the vehicle. (Note, as always, that there are currently no self-driving cars for sale.)

“I’ve always said that Tesla is as much a software company as it is a hardware company, but Tesla is really one of the leading AI companies in the world, both on the software side and on the hardware side,” Musk said in investors call. “As we get closer and closer to solving real-world AI, this is what has order-of-magnitude potential for Tesla.”

Tesla sees the release of its $15,000 FSD upgrade as a profit accelerator.

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Used car sales, paid supercharging revenue and growth in its mobile and physical service fleets also contribute to “much of the profit in 2022,” according to the report. Meanwhile, outside of vehicle-related growth, Tesla also saw increases in its energy storage (152%) and solar energy (18%) companies. In total, Tesla posted net profit of $3.7 billion, or $1.07 per share, compared with $2.32 billion, or 68 cents per share, in the fourth quarter. Revenue increased 37.2% to $24.4 billion.

Looking ahead, Tesla expects its growth streak to continue, forecasting 1.8 million cars sold in 2023. cyber truck production it is expected to start later this year in Texas, with more details at the automaker’s Investor Day event on March 1. Meanwhile, the Tesla Semi entered pilot production in Nevada, with the first examples delivered to PepsiCo late last year.

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