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Producer: Electric Planet News
Author: Yu Fei
In the early hours of this morning, Tesla released its 2022 first quarter earnings report.
Entering 2021, the figures in Tesla's financial report are gradually crazy, especially the gross profit margin, which has increased by nearly 2 percentage points per quarter on average, and even exceeded 30.6% in Q4 last year.
By Q1 this year, the gross profit margin of Tesla's auto business even came to:
32.9%！
Nearly 1/3 of the gross profit margin means that tesla can get a gross profit of more than 100,000 yuan for every car sold (calculated at the domestic Model Y price).
How consumers should perceive ultra-high gross margins is left to the comments section. In today's article, we mainly look at how Tesla, as a company, did in the last quarter.
In addition, following Musk's big news in the Texas factory, Tesla's more specific development plan, product research and development, and network expansion in 2022 were also mentioned in today's earnings call.
Without further ado, get started right away.
First, the craziest money-making season
The gross profit margin of 32.9% means that Tesla's quarterly earnings report is almost all-round "outrageous". As usual, we have summarized a series of key data for your reference:
Automotive revenue increased 87% year-over-year to $16,861 million;
Automotive gross profit was US$5,539 million (MOP35,556 million), up 132% year-over-year;
Total revenue of $18,756 million, up 81% year-over-year;
Total gross profit was US$5.46 billion (MOP35 billion), up 147% year-over-year;
Gross margin was 29.1%, up 779 cardinal points year-over-year;
Operating margin of 19.2%, an increase of nearly 2 times year-on-year;
Cash equivalent reserves $17.505 billion ($112.37 billion);
Total deliveries of 310048 units, up 68% year-over-year;
Global average inventory cycle of 3 days, a decrease of 63% (8 days) year-on-year;
Solar installed capacity of 48MW, a decrease of 48% year-on-year;
The installed capacity of energy storage business was 846MWh, an increase of 90% year-on-year;
3724 supercharging stations, an increase of 38% year-on-year;
33,657 superfilled piles, an increase of 37% year-on-year;
R&D expenditure of $865 million ($5.55 billion), up 30% year-over-year
In addition to gross margins, the most "outrageous" data is the global average inventory cycle. 3 days, which means that the car from arrival to delivery can be completed within the same working day of the week.
Gross margin-driven gross profit of $5.46 billion for the quarter exceeded BMW's average single quarterly profit in 2021 and even surpassed Ford Group's EBIT for the half year of 2021.
In addition to selling cars and making money, Tesla Energy also grew a lot in the first quarter, and the energy storage business nearly doubled year-on-year.
After a brief analysis of the data, let's see how Tesla itself summarized the first quarter:
"Expanding production capacity is at the heart of our decision-making. Over the past two months, the Texas and Berlin plants have begun delivering model Y (with minimal impact on first-quarter gross margin). At the same time, we have made significant efforts in terms of in-house batteries, raw material sourcing and supplier diversification."
Regarding the balance between cost and price, Tesla describes it this way:
"The supply chain challenge remains, and our team has been battling it for over a year. In addition to the chip shortage, the outbreak of COVID-19 has also affected supply chains and factory operations. In addition, the prices of some raw materials have risen several times in recent months. Despite our continued focus on reducing manufacturing costs, inflation continues to have an impact on our cost structure, prompting us to adjust our product prices."
The newly opened Texas plant became the focus of the world because it was the first factory for the 4680 battery + all-in-one chassis. However, according to the official description, the 4680 progress of the Texas factory will have to wait for some time to climb:
"At Cyber Rodeo, we delivered the first models with our own 4680 batteries, monomer front body castings and structural battery packs, which is an important milestone in capacity growth. Later this year, we expect the Texas plant to be able to produce both the 4680 structural battery pack and the 2170 model Y for the unstructured battery pack."
Similarly, the 2170 and 4680 production lines will coexist in the Berlin factory, but Tesla said that the Berlin factory will first build the 2170 battery model, and the 4680 battery will be needed and so on.
In addition, "the diversification of the chemical composition of the battery" is a point that Tesla emphasized in the financial report. Nearly half of the Tesla models sold worldwide in the first quarter used lithium iron phosphate batteries - lithium iron phosphate for entry models, which is actually a strategy that Musk has already mentioned on the 2020 battery day.
Second, new products, expansion, scale
The man came again.
"Get rid of the baggage", this is his opening statement. As of the quarter, Tesla's long-term debt (excluding financing for automobiles and energy products) was less than $100 million. "All but gone is all over.".
At the opening ceremony of the Texas factory, Musk said that next year will be tesla's new product outbreak year. So today's revelations, the production date is at least 2023, and some are even 2030.
For example, he once said that 20 million vehicles sold a year, he believes that Tesla will achieve it in the late this year, that is, close to 2030 - equivalent to 6 times Toyota's 2030 small goal.
Not so far away is the Robotaxi mentioned at the 2019 Model Y conference. As the first Tesla model without a steering wheel, the goal will be to achieve mass production in 2024 and the development conference in 2023.
As for Cybertruck, Musk said it "will definitely be mass-produced in 2023."
Another tentative 2023 is the robot Optimus, which will strive for proofing next year. Musk firmly believes that "Optimus will be more important than FSD, and it will gradually emerge in the next few years."
Talking about the FSD that can't take off the "beta" suffix for a long time, Musk seems to be less aggressive this time, saying that in the process of large-scale deployment of FSD, the team has seen a lot of "false dawn". "If you want to patch FSD at this stage, you are patching real-world AI."
Next year is the year of new products, and this year Tesla's task is to expand.
Focusing on China, the shutdown of the Shanghai factory has undoubtedly had a negative impact on Tesla's 2022. CFO Kirkhorn said the shanghai plant shutdown probably cost Tesla "a month" more than originally planned.
In addition, Musk pointed out that some parts purchased in China may also affect global production due to shutdowns.
But Musk is still confident in the Shanghai factory, "despite missing a few weeks, we can still see a record production in Shanghai in the second quarter, and the numbers in the third and fourth quarters will be better."
As for the Berlin plant, he believes that there is no need to worry about the ramp-up of production capacity, because "we have learned a lot from the Experience of the Shanghai plant".
Back in the United States, Tesla's problem may not be in production capacity, but in direct sales.
Musk said the U.S. government is not supporting the idea of direct marketing nationwide. So Tesla must single-handedly fight the anti-direct selling laws of the states.
But fortunately, Tesla does not have to worry about demand - at least Musk believes that there is no need to worry, "Tesla can produce about 1.5 million cars this year."
He said there are already separate teams to ensure that the Texas/Berlin plant climbs smoothly, and they will grow faster, "the 4680 structural battery pack actually simplifies the body shop floor." But he added that the real large-scale mass production of the 4680 will need to wait until the end of the third quarter of this year.
Drew Baglino, vice president of engineering, said that the true superiority of the 4680 structural battery pack will take several years to fully demonstrate - Musk's expression is the performance of the 4680, which has caught up with the strongest traditional battery at present.
Although the goal is 50% capacity growth, Musk believes that this is still not enough to meet demand. Because of this, he believes that there is nothing unfair about price increases, that "the demand is there". At the same time, he pointed out that today's Tesla price actually includes the actual logistics cost at the time of delivery.
Talking about prices, Musk added that Tesla's goal is still to accelerate the popularity of electric vehicles, such as the Model 3, "but it is difficult for us to fight inflation, and suppliers are also facing great pressure." But with Robotaxi, Tesla should be able to offer consumers "the lowest cost of transportation per mile."
"Robotaxi should cost less than taking the bus or subway," Musk flicked out another flag.
As the scale expands, the supply chain is gradually becoming the focus of Tesla's consideration, or more and more important.
"At different capacity scales such as 5 million, 10 million units, etc., the macro position of the supply chain needs to be studied more carefully," Musk said. For electric vehicles, lithium ore may be the limiting factor he will encounter during the above capacity scale.
He revealed that Tesla has some news about lithium materials and will inform everyone in recent months. In addition, Tesla now recycles more than 50 tons of battery material per week, "only more in the future." And Tesla recycles not only old batteries, but also scrap from traditional cars, and even tires.
"Do you like mining (cryptocurrency)?" Then lithium ore is the best for you", Musk joked about the prospect of lithium ore.
Third, make money in the short term, make big money in the long term
If the CEO of a car company says, "We don't have new products this year, there are many new products next year, but I am really going to increase the price this year, and I bet you will definitely have to buy them", then TA is afraid that he will be drowned by saliva.
Musk did just that, and of course encountered a lot of questions, but Tesla's sales are still standing steadily. Or that every quarter's earnings report will only make Tesla stand more stable.
In an interview with TED last week, Musk said, "I'm the one who knows how to make on the planet."
Perhaps Tesla, which produces 1.5 million cars a year, will not be able to convince the world. But if Tesla can really achieve an annual output of 20 million vehicles in 2030, then he said that his solar system knows the best about manufacturing, and I am afraid that no one will object.
Corresponding to this "ultimate flag", he said that Robotaxi costs less than taking the bus subway. It may seem like an economic flag, but it's actually a scale flag — even a significant portion of the $20 million annual production may have to be achieved by Robotaxi, if it does become the "lowest cost per mile."
Unfortunately tomorrow is not 2023.
(End)