Tesla (TSLA) achieved a ~17% operating margin in 2022, the best of any volume carmaker, demand is ever-higher, Musk on earnings call — Q4 report, more

-

-Advertisement-

Tesla (TSLA) CEO Elon Musk and other top executives conducted the company’s Year 2022 and Q4 2022 Earnings Call on Wednesday last week. Simultaneously, the automaker released the financial update report for 2022 and the year’s last quarter.

Elon Musk’s opening remarks for Q4 and 2022 revealed some interesting financial, operational, and production goals that the company achieved last year. He also put investors’ concerns about the demand for Tesla vehicles to rest by giving a thorough answer to this burning question that has been getting frequently asked lately.

“It was a fantastic year for Tesla, it was our best year ever on every level,” Musk started the Tesla Q4 2022 earnings call with these words.

Tesla Model Y Accessories by EVANNEX (Sponsored Banner).
– Sponsored –

Tesla achieved an operating margin of around 16.8% in the year 2022 and 16.0% in Q4. Musk said that a ~17% operating margin is the highest among any volume carmaker in the world. “Doing so, we have generated $12.5 billion dollars in net income and $7.5 billion in free cash flow,” Musk quoted the figures from the Q4 2022 report (full PDF below).

“Importantly, the Tesla team achieved these records, while, despite the fact that 2022 was an incredibly challenging year due to 4 shutdowns, very-high interest rates, and many delivery challenges,” Elon Musk further explained.

Besides achieving the highest operating margins and profit per vehicle, Tesla delivered a record number of 1.3 million vehicles in 2022. Both Q4 2022 and the year 2022 were new records for the automaker in terms of vehicle deliveries.

Tesla (TSLA) quarterly financial summary from Q4 2021 to Q4 2022.
Tesla (TSLA) quarterly financial summary from Q4 2021 to Q4 2022. Source: Tesla 2022 Update (PDF below).

Tesla’s automotive revenues grew 31% in Q4 2022 compared to the same quarter last year. Automotive gross profit also grew by 13% for the same period.

We can see some more interesting facts in the following chart. Compared to the entire 2021, Tesla’s automotive revenues grew by a staggering 51%. And the automotive gross profit went up by 47%.

Tesla (TSLA) yearly financial summary and growth comparison from 2018 to 2022.
Tesla (TSLA) yearly financial summary and growth comparison from 2018 to 2022. Source: Tesla 2022 Update (PDF below).
A Reuters report released in November 2022 suggested that Tesla is earning the highest per-vehicle profit margin of $9,754 compared to Toyota in 2nd position which is making $1,273 per vehicle.
– Advertisement –

Elon Musk also addressed investors’ concerns over the low demand for Tesla vehicles. “Thus far in January, we’ve seen the strongest orders year-to-date than ever in our history,” he said.

Usually, the start of the year, especially January is notorious for low sales in the automotive industry. But the automaker has been experiencing a surge in vehicle orders driven mainly due to Tesla’s current price cuts and potential federal tax credits.

“Basically, price really matters. I think there’s a vast number of people that want to buy a Tesla car but can’t afford it and so these price changes really make a difference for the average consumer,” Musk explained.

“It has always been our goal to make cars that are affordable to as many people as possible, so, I am glad that we’re able to do so,” he added.

Musk also revealed that Tesla is currently receiving orders twice as much as the electric automaker can produce. However, he also said that it’s hard to say if this rate of orders is sustainable even in the coming months.

Elon Musk also pressed the fact that the cost of production at Giga Texas and Giga Berlin are dropping as these Tesla factories are producing more and more cars.

Video: Listen to Tesla’s Q4 and full-year 2022 earnings call (Financial Results and Q&A webcast with Elon Musk and other TSLA executives).
– Advertisement –

Stay tuned for constant Tesla updates, follow us on: 
Google News | Flipboard | X (Twitter) | WhatsApp Channel | RSS (Feedly).

Tesla Q4 2022 and Year 2022…

Related

Iqtidar Ali
Iqtidar Alihttp://www.teslaoracle.com
Author of more than 1500 articles on Tesla, SpaceX, and EVs. His work has been liked and tweeted by Elon Musk and other prominent influencers. You can reach him on Twitter @IqtidarAlii

Latest News

Tesla is testing FSD Supervised ride-hailing in Texas and California, preparing for Unsupervised FSD, says Musk

Elon Musk's electric vehicle and real-world self-driving AI company Tesla (TSLA) shared an update on the status of its...

Tesla (TSLA) surges after Q1 2025 Earnings Call, Musk’s time at DOGE to drop significantly soon

Surprisingly, after reporting negative Q1 2025 automotive and overall revenues yesterday, the Tesla (TSLA) stock price surged this morning....

What to expect from Tesla (TSLA) Q1 2025 Earnings Call with Elon Musk

Today's Tesla (TSLA) Q1 2025 Earnings Call is probably the most awaited call by investors, customers, enthusiasts, and Elon...

Camouflaged Tesla Model Y spotted in India as PM Modi and Musk meet in the US

A camouflaged 2026 Tesla Model Y Juniper has been spotted in India multiple times over the last week. This...
- Advertisement -

SpaceX accelerates Starship Gigabay development in Florida, OLM construction makes progress, more

Elon Musk's spaceflight and astronautics company SpaceX is accelerating the Starship program in Florida as well. SpaceX is building...

Static fire test of Booster 14, SpaceX’s first step toward Starship reusability

After two previous partial failures of Starship flight tests, Elon Musk's spaceflight and astronautics company SpaceX is gearing up...

SpaceX installs redesigned shorter Chopsticks on Pad B launch tower for Starship catch, Gigabay construction preps, Starbase updates

Elon Musk's spaceflight and astronautics company SpaceX is not just working on the next Starship launch but on near-future...

Tesla Tips & Tricks

Here’s how to open a frozen Tesla Model 3/Y door handle

Snow and rain in the extremely cold weather can...

Here’s how much battery is drained if a Tesla is left unplugged for 32 days

A Tesla Model 3 owner parked her car in...

Watch what happens when the Tesla Model 3 screen is smashed with a hammer while driving

A tech YouTuber Taras Maksimuk has performed a very...

Tesla Quarterly Reports & Eearnings

Tesla (TSLA) surges after Q1 2025 Earnings Call, Musk’s time at DOGE to drop significantly soon

Surprisingly, after reporting negative Q1 2025 automotive and overall...

What to expect from Tesla (TSLA) Q1 2025 Earnings Call with Elon Musk

Today's Tesla (TSLA) Q1 2025 Earnings Call is probably...

Tesla (TSLA) announces time and date of the Q1 2025 Earnings Call

Elon Musk's electric vehicle and energy storage company Tesla...
- Advertisement -

You might also likeRELATED
Recommended for You