Tesla (TSLA) Q3 Results: Tesla share price crash on below expected quarterly revenue

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Tesla Q3 Results 2022

Tesla reported third-quarter earnings after the market closed on Wednesday. Tesla share price opened 7% lower on below expected quarterly revenue. Tesla stock has been under pressure in 2022 and lost nearly half of its share price value amid rising interest rates, inflation, supply chain issues and lower vehicle deliveries in the September quarter.

Let us look at Tesla Q3 2022 numbers in detail.

Tesla Q3 results Revenue: Tesla reported revenue of $21.45 billion in Q3 and earnings of $1.05 per share. Revenue is below analysts' expectations of $21.96 billion, but EPS is higher than an estimate of 99 cents per share. The revenue was up 56% year on year. The revenue increased by growth in vehicle deliveries and increased ASP.

Automotive revenues made up $18.69 billion of the company’s total. Tesla’s automotive regulatory credits made up 1.5% of automotive revenues at $286 million for the quarter.

Tesla Q3 Earnings 2022: The operating income improved YoY to $3.7 billion in Q3, resulting in a 17.2% operating margin. YoY, operating income was primarily impacted by the following items:

+ increased ASP

+ growth in vehicle deliveries

+ profit growth in other parts of the business

- higher raw material, commodity, logistics, and expedite costs

- negative FX impact of approximately $250 million

Source: Tesla quarterly report

Tesla Q3 2022 Cash: In Q3, cash, cash equivalents, and short-term marketable securities increased sequentially by $2.2 billion to $21.1 billion. It was driven mainly by a free cash flow of $3,3 billion, partially offset by debt repayments of $0.9 billion.

Source: Tesla quarterly report

Tesla Q3 Vehicles sold: Tesla produced 365,000 vehicles and delivered 343,000 in the September quarter. Sequentially, the numbers were higher. However, it failed to meet street estimates of 358,000 due to highly challenging environment for transport and logistics.

Source: Tesla quarterly report

Elon Musk on Twitter deal: Musk has said that he thinks Twitter is an asset that has sort of languished for a long time but has incredible potential. The long-term potential for Twitter is an order of magnitude greater than its current value. Musk is expected to sell a portion of his considerable shares in Tesla to help finance the close of that $44 billion take-private deal.

Elon Musk on Tesla's future: Musk said that he saw a path for Tesla to be worth more than two mammoth companies - Apple Inc and Saudi Aramco. Tesla's market cap is now under $700 billion, while Apple is worth $2.3 trillion and Saudi Aramco is worth $2.1 trillion. He later added that that doesn’t mean it will happen or will be easy.

Tesla quarterly results outlook: The company plans to grow its manufacturing capacity as quickly as possible. It expects to achieve a 50% average annual growth in vehicle deliveries. In terms of profits, it expects the company's hardware-related profits to be accompanied by an acceleration of software-related profits.

  • Did Tesla beat earnings in Q3?

  • How many vehicles did Tesla sell in the September quarter?