Tesla set new benchmarks for its fourth-quarter and full-year financial results, but still fell short of analyst estimates for the periods.

Tesla Berlin Paint Shop 2022
Tesla’s new paint shop in Berlin has helped it produce 3,000 Model Ys a week.

The Texas-based electric vehicle maker reported net income of $12.6 billion on revenue of $81.5 billion. Although it increased its revenue by 51% and its net profit by 128%, the company still fell short of the targets set by analysts. The company was expected to report earnings per share of $3.62, but analysts expected more, starting with EPS of $4.01.

To be fair, Tesla didn’t miss much with analysts’ consensus estimate of $81.7 billion for FY22 revenue, and it topped the revenue estimate by 24, $2 billion for the fourth quarter, although it missed fourth quarter EPS which is expected to be $1.13. These numbers were $24.3 billion and $1.07, respectively.

The company delivered a record 1.31 million vehicles in 2022, but that fell short of expert guesses, which predicted 1.34 million.

Other impressive results

Tesla Maps 1-25-23

The company’s operating margin for the final portion of the year was 16%, a figure its rivals would certainly celebrate. For the full year, the operating margin was 16.8%. Its adjusted EBITDA increased 65% for the full year to $19.2 billion and $5.4 billion for the fourth quarter, up 32%.

The company also made progress throughout the year on its delivery issues that proved costly for the automaker. Officials noted that the third month of each quarter is the busiest for deliveries, but the total percentage has been declining throughout 2022.

In Q2, the busiest month accounted for 74% of full-quarter sales. That figure fell to just 64% in the third quarter and to 51% in the last quarter – Tesla’s most harassed of the year.

The company has seen production rates at its Gigafactories in Austin, Texas and Berlin, Germany increase significantly. In fact, the company’s two newest factories produced 3,000 Model Ys a week. The Austin plant produced enough 4680 cells to produce 1000 batteries.

Growth rate of Tesla deliveries 01/25/23

Expectations

Although it’s been a good year – especially the mad rush at the end – officials have high expectations for 2023.

“We plan to ramp up production as quickly as possible in line with the 50% CAGR target that we started aiming for in early 2021,” the company said. “Some years we may grow faster and others slower, depending on a number of factors. For 2023, we expect to stay ahead of the long-term CAGR of 50% with around 1.8 million cars for the year. »

The company also noted that it has “sufficient” cash on hand to fund its current product cadence as well as its development. He also outlined his long-term capacity expansion plans, which would include the $3.6 billion plan to expand Gigafactory Nevada, $776 million in Texas for the Austin plant and an additional $1 billion. in Indonesia.

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