compile / Zhang Ou
edit / Zhang Linyu
design / Zhao Haoran
source / Wall Street Journal, CNBC, title picture: ALLISON DINNER/GETTY IMAGES
On October 19, Tesla announced its Q3 financial report.
In the third quarter of 2022, Tesla's sales reached US$21.45 billion, reaching its highest quarterly revenue in history, but lower than the Wall Street 's expected US$22 billion. The company said its performance was affected by the inefficiency of the strengthening of the dollar, rising raw material and logistics costs, and the acceleration of factories in Texas and Germany.
The third quarter free cash flow $73.3 billion, and is expected to be $2.4 billion. Adjusted earnings per share were $1.05, and expected $1.01. Net income (GAAP) reached US$3.33 billion, and the gross profit margin of automobiles remained stable at 27.9%, the same as in the second quarter.
Executives answered a wide range of questions on the earnings call, including CEO Elon Musk's acquisition of Twitter. Musk also talked about the possibility of stock buybacks and drew a $4.4 trillion pie for Tesla's future market value.
Source: JONATHAN NEWTON/THE WASHINGTON POST/GETTY IMAGES
Good-looking numbers
Revenue in the automotive department was US$18.69 billion, an increase of 55% from a year ago. Revenue costs rose to $13.48 billion from $10.52 billion in the second quarter, consistent with the increase in auto sales. Tesla's auto regulatory credit accounted for 1.5% of auto revenue this quarter, at $286 million.
Although vehicle production and delivery volume are increasing, the service has not kept up, which is also a pain point for many Tesla owners.
Musk said in July: "I am happy to work with Tesla's service department to achieve as much immediate service as possible and apply F1 pit station technology to Tesla."
But Tesla only added 6% of its store and service center locations in the third quarter, adding 41 new service points compared to the second quarter. However, its fleet arranged more mobile service vehicles, and service technicians would drive these cars to the on-site repair of customers' cars when possible.
As of the end of the third quarter, Tesla said it was operating 728 stores and service points, with a fleet of 1,532 mobile service vehicles.
's third-quarter service and other revenues (the cost of customers powering cars at Tesla supercharger stations, sales of Tesla branded merchandise, and repairs outside the warranty period for customers' cars) rose to $1.65 billion.
Tesla's energy division revenue for the quarter was $1.12 billion. The department sells spare batteries for residential, commercial and utilities and installs solar roofs.
The revenue growth of the energy sector mainly comes from the sales of energy storage systems. It installed a 2.1GWh energy storage system this quarter, and Tesla said there was a shortage of energy storage products.
Tesla's energy division is competing with the automotive division and other electric car manufacturers for battery supply. Tesla wrote in the shareholder manual: "We still believe that the limitations of the battery supply chain will be the main factor limiting the growth of the electric vehicle market in the medium and long term."
Revenue for each quarter of the third quarter of 2018-2022 (Source: Company Statements / Gabirel Cortes / CNBC)
"Anti-aging Tesla"
In early October, Tesla announced that electric semi-trailer trucks will start delivery in December, and the news was confirmed again at the Q3 financial report meeting. After several delays, the company still hasn't provided an exact timetable for the Cybertruck pickup to start production, just saying it will be produced there after the Texas Model Y production volume increases.
In the third quarter, the delivery volume of Tesla car reached 343,000 units, and the production volume reached 365,000 units. It said that in the last few weeks, there was a bottleneck in the transportation capacity of new vehicles, but the company is "transitioning to a smoother delivery speed".
Chief Financial Officer Zach Kirkhorn expects Tesla will not be able to meet its goal of increasing annual delivery by 50% by the end of 2022, just one step away. He attributed the lower growth to changes in the way in which cars were produced and transported to customers.
Tesla delivered a total of about 936,000 cars in 2021, and more than 1.4 million cars will be required to deliver more than 50% growth target in 2022. In the first three quarters of 2022, a total of 907,000 vehicles were delivered.
2022's sub-standard standard may be an exception for this company. Tesla executives reiterated previous guidance, saying “Over the years, we expect car delivery to achieve an annual growth target of 50%”.
Musk described Tesla as "with anti-recession ability." "We will step on metal pedals regardless of the wind or rain. So, we will not reduce our production in any meaningful way, regardless of the economy's recession."
He said confidently: "I can't stress it too much, demand in the fourth quarter is very good, and we expect every car produced by Tesla to sell in the future we can see. The factory is running at full speed, and we are accelerating the delivery of vehicles that are coming off the production line and maintaining strong transportation. Profit margin. ”
Tesla Texas factory
repurchase stocks, and draw big cakes
At this financial report meeting, Musk revealed that the company's board of directors has been discussing the idea of repurchasing Tesla stocks. It said Tesla may conduct a "meaningful buyback" in 2023, with an estimated range of between $5 billion and $10 billion, which is subject to approval by the board of directors.
Musk's move seems to be to attract investors. He described a future where Tesla will surpass , Apple , becoming the largest company in the United States, with its market valuation exceeding the sum of Apple and oil giant Saudi Aramco (Saudi Arabian Oil Company) (about $4.4 trillion).
However, he added: "This is not certain because it is not easy to do."
Tesla's stock price has fallen by about 37% as of the day of the financial report meeting (October 19), surpassing the decline of the technology stock Nasdaq Composite Index by about 32% as of the day of the financial report meeting, as the company has been dealing with production issues and ongoing supply chain challenges.
Musk took the initiative to provoke the Twitter acquisition, which he could not get rid of in the end, also had an impact on the automaker's stock.
answered a shareholder question, he said: "It's obvious that the price I and other investors need to pay for Twitter is too high now. But it's an asset that has been neglected and its long-term potential is an order of magnitude greater than its current value."
html In July, Musk proposed to terminate the acquisition of Twitter, and the social giant immediately sued Musk, forcing him to complete the deal. The two sides were originally going to court on October 17. On October 3, he issued another article saying that he would advance the continued acquisition of Twitter if the court suspends the lawsuit before receiving proceeds from debt financing.Delaware Prime judge Kathaleen McCormick gave a deadline. If the two parties do not complete the transaction before October 28, the trial will be arranged again in November. In other words, there is only one week left for Musk.
is expected to sell part of his stake in Tesla to complete the $44 billion privatization deal. He has sold more than $15 billion in Tesla stock in 2022.
Entering October, Tesla's stock trend
The world's richest man's macroeconomic theory
Shareholders asked Tesla executives about macroeconomic issues that affect Tesla's business in China and other countries.
"China is experiencing a certain degree of recession, mainly in the real estate market. Europe has also experienced a certain degree of recession under the influence of the energy crisis ." Musk said, "North America's health is quite good."
In order to fight inflation , the Federal Reserve has conducted three rate hikes after entering 2022, bringing the key benchmark borrowing rate to the target range of 3-3.25%, which is the first time since 2008. It clearly stated that it plans to continue hikes until the federal funds rate reaches 4.6% in 2023.
Most Americans' financial lives will be affected by chains, and it is obvious that the world's richest man is the exception.
Musk believes that deflation is more serious than inflation. He said: "In the long run, the price of commodity has dropped a lot. However, some areas, such as battery-grade lithium, are expensive. ”
Speaking of the Federal Reserve rate hike, he said: “The Federal Reserve did not notice changes in commodity prices. If you look in the rearview mirror, the decision of Fed makes sense, but if you look in the front windshield, it doesn't make sense. They should be seen from the front windshield. I think they will eventually realize that and lower interest rates. "
This article is originally produced by Automobile Business Review
reprint or content cooperation please contact us for instructions
Illegal reprint will be prosecuted
