Titanium media APP April 21 news, Tesla today in the U.S. stock market after hours announced the first quarter of 2022 (hereinafter referred to as Q1) financial report. The financial report data shows:
Tesla's 2022 Q1 revenue was $18.756 billion, up 81% year-over-year;
GAAP net profit for the first quarter was $3,318 million, up 658% year-over-year;
Combined with the previous market expectations, Tesla's operating income and net profit in the first quarter exceeded market expectations and set a new record for Tesla.
Undoubtedly, Tesla delivered a brilliant financial report data.
The automotive business drove overall growth
From the overall financial report data, Tesla's 2022 Q1 growth still comes from the largest revenue of the automotive business, the data shows that the first quarter from the automotive business revenue of $16.861 billion, an increase of 87% year-on-year.
Tesla also mentioned in the financial report that part of the revenue increase was due to the increase in the number of cars delivered and the increase in the average sales price, specifically:
Total electric vehicle deliveries totaled 310,048 units, up 68% from 184,887 units in the same period last year;
Total electric vehicle production was 305,407 units, up 69% year-on-year;
GaAP Automotive gross margin for the first quarter was 32.9%.
Musk said on the earnings call that Tesla is expected to grow by 60% in car deliveries this year, and is confident of achieving an average annual delivery growth rate of 50% in the coming years.
In fact, when the automotive industry is trapped by rising raw material prices and supply is blocked and has to use price increases to ensure basic profit demand, Tesla's auto business can rise against the trend, which is enough to reflect its ability to resist risks.
It should be pointed out that in the face of the increase in upstream costs, Tesla terminal products have also formulated a price increase strategy - to some extent, this offsets the pressure brought by upstream costs to downstream terminals.
At the same time, Tesla is also focusing on solving the challenges brought about by the rise in upstream raw materials. For example, in the face of rising lithium salt prices, Tesla, in addition to signing supply agreements with upstream lithium salt producers, will also extend its tentacles to more upstream mining areas to ensure the supply of raw materials by buying ore.
On the other hand, the main reason why Tesla has been able to maintain a 32.9% automotive gross margin is due to its clear product strategy and its own factory to reduce the cost of automobile production.
From the perspective of Tesla's existing product line, its current production and delivery models are concentrated in Model 3 and Model Y, and the common rate of its parts department is as high as 70%, which fully enhances Tesla's bargaining space for upstream raw materials.
In addition to the outstanding performance of the automobile business, tesla's revenue from other businesses has not been delayed. Revenue from the car rental business was $668 million, up from $297 million in the year-ago quarter.
In addition, Tesla's revenue from the sale of carbon credits to other automakers also added a handful of firewood, reaching $679 million, up 31% year-on-year. Earnings per share were $3.22, beating analysts' expectations of $2.26.
Obviously, Tesla's eye-catching performance in the first quarter is the result of the joint efforts of many factors, but in the face of the uncertainty brought by the general environment, Tesla also made a risk expectation analysis in the earnings call.
There is a supply problem
"Supply chains are the main limiting factor, with self-operated factories operating below capacity for several consecutive quarters, a situation that is likely to persist in 2022," Tesla said.
According to Tesla CFO Zach Kirkhorn, Tesla's Shanghai factory lost "about a month" of production due to the impact of the epidemic. Musk said that he thought that the Shanghai Gigafactory would set a new record for production in the second quarter, but due to the shutdown storm, the production in the second quarter may be the same as the first quarter, or slightly lower than the first quarter.
In addition, although the Texas and Berlin super communists have entered the production stage, the start of the new factory needs to go through a production climbing period, and there is a certain lag in production performance.
"From producing small parts to mass-producing high-quality products, a gigafactory takes about 9 to 12 months of ramp-up," Musk said on an earnings call.
In addition to the stagnation of production caused by the epidemic, the shortage of raw materials and the rise in prices have brought challenges to supply. According to tesla's estimates, about 10%-15% of the cost structure of an electric vehicle is related to raw materials.
However, for the current problem of rising raw material prices, Tesla said that due to the signing of supply contracts with suppliers in advance, it will not directly affect production, and there is a certain lag in short-term price fluctuations.
But in the long run, as production rises and demand for raw materials increases, Tesla is also gradually seeking solutions.
"We're trying to figure out how much total raw materials are needed to accelerate the transition to sustainable energy... We care a lot about raw materials, not just mining and using them, but when the materials come into the factory and achieve 100% utilization," Tesla said, revealing that there are plans for implementation or will be announced in a few months.
It is worth mentioning that Tesla not only keeps the raw material entry plan secret, but also "wants to say and refuse" the plan of self-driving taxis; at the earnings report meeting, Musk only revealed that he started the Robotaxi work in early April and plans to achieve mass production in 2024.
【Source: Titanium Media】