Tesla posts its 2022 financial results: What do the numbers mean for investors?
Tesla has released its quarterly earnings report for the last three months of 2022. Here is what you need to know & how the announcement will impact Tesla’s stock price.
With so much focus on Elon Musk’s acquisition of Twitter, investors have raised concerns over the strategy and management of Tesla Motors and Space X.
Today’s Tesla financial report for 2022-Q4 (October, November, and December) are one-way Musk can deny that his purchase of Twitter is impacting his other business... at least at first glance.
High Level Results
- Topline: $13.7 billion GAAP operating in 2022; $3.9 billion in Q4
- Operating cash flow of $14.7 billion
- Tesla breaks record for number of cars delivered in 2022: 1.31 million
“In the last quarter, we achieved the highest-ever quarterly revenue, operating income, and net income in our history,” reads the company’s report.
Telsa’s increased production capabilities helped them to deliver 1.3 million vehicles, more than any other year.
This record-breaking quarter formed part of a record-breaking year with total revenue increasing fifty-one percent and net income doubling to $12.6 billion.
How have investors responded to the results?
Investors have responded with cautious optimism to the news. Tesla’s stock price has moved up 0.38 percent today, adding onto a sixteen percent increase seen over the last five days. Nevertheless, the news has not managed to lift the stock price anywhere close to the levels seen at this time last year; over the last twelve months, Tesla’s stock has fallen by over fifty percent.
Additionally, some shareholders have voiced frustration with Musk’s demeanor on Twitter, which they believe could offend potential Tesla customers —who tend to be on the more liberal side of the political spectrum. Concerns over canceled orders did not materialize as a cost to the firm’s bottom line last quarter, but the risk remains.
Safety concerns with Tesla’s self-driving software could hurt its bottom line
The report also mentions the rollout of Telsa’s Autopilot and Full Self-Driving (FSD) software. FSD is now available for purchase, and all customers interested based in the United States and Canada can access it. Musk has emphasized that FSD will be critical to the profitability of Tesla in the coming years as they compete with traditional automakers who are moving to the electrical vehicle market.
Whether or not FSD is helping or hurting the business remains to be seen. Videos of crashes involving the software have raised many concerns that the rollout may have happened too quickly.
None of Tesla’s models were given a five-star safety rating by the Department of Transportation this year.