Tesla TSLA Q1 2022 Earnings Beats Wall Street Estimates with EPS of $3.22 on Revenue of $18.75B

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Tesla Inc (NASDAQ: TSLA), the Texas-based EV maker, reported Adj EPS (non-GAAP) of US $3.22, and record revenue of US $18.756 billion for Q1 2022, exceeding Wall Street's average estimate. After Tesla trading officially closed on April 20, 2022, the company released its Shareholder Letter before its Q1 2022 Earnings Call. Tesla management will hold a live question and answer webcast today at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss the Company’s financial and business results and outlook.

Webcast: http://ir.tesla.com (live and replay)

HIGHLIGHTS

Cash

• Operating cash flow less capex (free cash flow) of $2.2B in Q1
• Total debt ex. vehicle and energy product financing under $0.1B

Profitability

• $3.6B GAAP operating income; 19.2% operating margin in Q1
• $3.3B GAAP net income; $3.7B non-GAAP net income (ex-SBC 1 ) in Q1
• 32.9% GAAP Automotive gross margin

Operations

• Production & Deliveries started from Gigafactory Berlin in March 2022
• Production & Deliveries started from Gigafactory Texas in April 2022

FINANCIAL SUMMARY

Revenue

Total revenue grew 81% YoY in Q1 to $18.8B. YoY, revenue was impacted by the following items:
+ growth in vehicle deliveries
+ increased average selling price (ASP)
+ growth in other parts of the business

Profitability

Tesla's operating income improved to $3.6B in Q1, resulting in a 19.2% operating margin. This profit level was reached while incurring SBC expense attributable to the 2018 CEO award of $48M in Q1. YoY, operating income was primarily impacted by the following items:
+ growth in vehicle deliveries
+ increased ASP
+ reduced cost (COGS) per vehicle despite inflationary pressures
+ lower stock-based compensation expense
+ increase in regulatory credit sales
- rising raw material, commodity, logistics and expedite costs
- increase in operating expenses

Cash

Quarter-end cash, cash equivalents and short-term marketable securities increased sequentially by $0.3B to $18.0B in Q1, driven mainly by free cash flow of $2.2B, partially offset by debt repayments of $2.1B. Our total debt excluding vehicle and energy product financing fell to less than $0.1B at the end of Q1.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.