The second quarter of 2022 will be remembered as the first in which things did not go so well concerning how Tesla was doing, although it was due to external causes. The Shanghai gigafactory had to close for 20 days and then had to deal with logistics problems. Some 50,000 cars went out of production.
As deliveries fell sharply, Wall Street analysts had forecast $16.521 billion in revenue and earnings of $1.81 per share. They fell short. In reality, Tesla invoiced $16,934 billion, half a dollar more per share, and increased its “cash” by 800 million, up to 18,300 billion. Today it is almost the same to talk about dollars or euros.
Two other figures are very interesting. On the one hand, the 14.6% operating margin (compared to 19.2% in Q1), is an increase compared to last year of 358 basis points (Q2 2021 at 11%). This means that the price increases are above the cost increases they have had, increasing what they earn per car. On the other hand, the month of June was the best in production in the history of the brand.
|Period||Production||Deliveries||Billing||Earnings per share (GAAP)|
|Q1 2022||305,407||310,048||18,756 billion (+81%)||$2.86|
|Q2 2022||258,580||254,695||16,934 billion (+42%)||$1.95|
They are very good prospects for the third quarter. What’s more, all factories have slightly increased their Model 3 and Model Y production capacity. Model S and Model X capacity remains as it is, 100,000 units in Fremont, above market demand.
Fremont’s capacity is now 550,000 Model 3/Ys, an increase of 50,000 units from the first quarter. In Shanghai, capacity has been expanded considerably, from more than 450,000 units to more than 750,000 per year, consolidating it as the largest electric car factory in the world. Lastly, both Giga Berlin and Giga Austin have gone from “initial production” to more than 250,000 units a year (each) of Model Y.
The rest of the models are still in the “development” phase and there is no defined production capacity for them: Cybertruck, Semi, Roadster, Robotaxi, and others. Taking into account what has been said, Tesla would end the year with a capacity of more than 1,800,000 Model 3/Y (especially the crossover ) and another 100,000 Model S/X.
It does not mean that the year will end with 1.9 million units, that would be in an ideal scenario, but the results of 2021 will be exceeded for sure. And surprisingly, this very positive news has not caused a bullish rally in the stock market, but rather a simply positive and typical reaction of a traditional manufacturer: +5.38% in five days and 742.50 dollars per share. The hype always goes its way, regardless of economic and industrial figures, which are the ones that matter.