Tesla Posts Record Financials In Q1 2022: US$18.76 Billion In Revenue, US$3.32 Billion Net Income

Tesla (Nasdaq: TSLA) shares surged following the release of its Q1 2022 financials on Wednesday. The automaker recorded quarterly revenue of US$18.76 billion, up from Q4 2021’s US$17.72 billion and Q1 2021’s US$10.39 billion.

The topline revenue figure also beat the estimated US$17.92 billion from analysts and marks an all-time high record for the company. Following the announcement, Tesla’s shares rallied by as much as 6.7% pre-market, climbing back up north of the US$1,000 mark.

The company also delivered a total of 310,048 vehicles during the quarter, an increase from 308,650 vehicles last quarter and 184,877 vehicles last year.

Gross and operating profit margins also soared to 29.1% and 19.2% at the end of the quarter, compared to last quarter’s 27.4% and 14.7%, and last year’s 21.3% and 5.7%.

Net income for the quarter came in at US$3.32 billion, also up from last quarter’s US$2.32 billion and last year’s US$438 million. This translates to US$2.86 earnings per share, which also beat the expected US$2.27 per share.

Generated operating cash flow for the quarter came in at US$4.00 billion, a decline from last quarter’s US$4.59 billion but an increase from US$1.64 billion. This led the firm to end with US$17.51 billion in cash and cash equivalents.

However, Tesla CEO Elon Musk acknowledged that the firm has yet to draw up plans for investing its growing cash reserves.

“If inflation keeps going crazy, $500 billion might be like $20 billion today…. So, we’ll see what $500 billion buys you in a decade, but it might be a lot less. So, I don’t know if we’ll — that seems like a lot of cash. I don’t know. We’ll try to do something useful with it… I realize that’s a problem, that’s for sure,” Musk said in an earnings call with shareholders.

Nevertheless, many shareholders on Twitter expressed approval and praises for Tesla CEO Elon Musk on the firm’s quarterly performance. Some have even drawn comparisons vis-a-vis fellow electric vehicle maker Rivian that recorded wider losses in its Q4 2021 financials.

Amid the praises, the Tesla chief said that “there are no discussions currently underway for incremental compensation” for him.

Musk recently opened Tesla’s Giga facility in Texas where he also announced the firm’s projects in the pipeline, including the planned Cybertruck deliveries, self-driving robotaxis, and a humanoid robot named Optimus.

On the other hand, the automaker has also been facing a series of recalls in North America and Europe, mostly related to malfunctioning automated parts and sudden hood releases at high speeds.

Tesla last traded at US$977.20 on Nasdaq.

Information for this briefing was found via Seeking Alpha and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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