Tesla, Inc. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue & Margins: Tesla reported record results for Q3 2022. GAAP operating margin reached 17.2% (up from 14.6% in Q2 2022), and free cash flow surpassed $3 billion. Automotive gross margin stood at 27.9%, slightly down from 28.4% in Q2, primarily due to ramping costs at Giga Texas and Giga Berlin.
  • Production & Deliveries: Record vehicle production with Giga Berlin reaching 2,000 units per week and Giga Texas approaching the same milestone. Total production continues to ramp with an annual growth target of 50%. Fremont achieved record output again. Tesla noted logistic constraints impacted end-of-quarter deliveries.
  • 4680 Battery Cells: Production tripled quarter over quarter. Tesla expects 4680 cells to contribute significantly to vehicle production in the coming months, especially at Giga Texas.
  • AI and Autonomy: Tesla hosted AI Day 2, demonstrating the first prototype of the Optimus robot and announcing wide release of FSD Beta in North America within a month. Nearly 60 million miles have been driven in FSD mode. Elon Musk reiterated confidence in achieving Level 4/5 autonomy milestones in the near future.
  • Energy Business: Tesla Energy achieved record gross profits, driven by high Megapack and Powerwall volumes. Deployment and profitability continue to scale strongly.

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Martin Viecha: Good afternoon, everyone and welcome to Tesla’s Third Quarter 2022 Q&A Webcast. My name is Martin Viecha, VP of Investor Relations and I am joined today by Elon Musk, Zachary Kirkhorn and a number of other executives. Our Q3 results were announced at about 3:00 p.m. Central Time in the update deck we published at the same link as this webcast. During the call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. During the Q&A session portion of today’s call, please limit yourself to one question and one follow-up. Please use the raise hand button to join the question queue. But before we jump into Q&A, Elon has some opening remarks. Elon? Elon Musk: Thank you, Martin. So just to do a Q3 recap. Q3 was another record quarter on many levels. We had our industry-leading operating margin reach 17%. And our free cash flow surpassed $3 billion in Q3 and approached $9 billion in the past 12 months. As our factories ramp, we’re looking forward to a record-breaking Q4. So it really, knock on wood, looks like we’ll have an epic end of year. So, Q4 is looking extremely good. On the production ramp, Giga Berlin achieved another milestone of 2,000 cars made in a week with very good quality and is ramping rapidly. Giga Austi

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