Tesla’s quarterly results are out and do better than estimates. Despite a record number of unsold shares, the share price reacted well, ending the session on the positive side. According to Musk, the price reductions will strongly boost demand at the start of the year. He expects there to be a recession, but for Tesla to hold on and hit a new production record this year. He also gives news about the Cybertruck.
In the news : Tesla’s quarterly results, announced overnight from Wednesday to Thursday.
- With a profit of $5.77 billion (or $1.19 per share) and a turnover of $24.32 billion, Tesla made slightly better than estimates analysts. It is also better than in the same quarter in 2021: +37% for turnover, +19% for profit.
- A turnover which is essentially composed of the segment of electric vehicles: it represents 21.3 billion dollars.
- On all yearthat’s $81.46 billion in revenue, with $20.85 billion in profit, up more than 50% in double digits, compared to 2021.
1.3 million electric vehicles produced, huge unsold numbers
Numbers : a record number of vehicles produced and sold, but a failed bet for Elon Musk.
- Over the quarter, Tesla produced 439,701 vehicles (+44% compared to the same quarter in 2021), including 20,613 Model S and X (+57%) and 419,088 Model Y and 3 (+43%). In terms of sales, it is respectively 405.278 (+31%), 17,147 (+46%) and 388,131 (+31%).
- This leaves unsold nearly 35,000 vehicles. A record. And the opposite of a year ago, where Tesla had sold more vehicles (3,000) in the quarter than the firm had produced.
- This is also one of the reasons that prompted the manufacturer to reduce its prices: emptying stocks. Too much stock always creates deflationary pressure.
- Over the whole year, it is 1,369,611 vehicles produced (+47%). Sales: 1,313,851 vehicles (+40%). This too is a huge difference: 56,000 more vehicles produced than were sold. In 2021, the difference was negative: 930,000 EVs produced, 936,000 sold.
- It finally turns out that Musk had his eyes bigger than his stomach. About a year ago, he claimed that in 2022 Tesla would sell and produce 1.5 million vehicles.
- But the fact remains that investors welcome all these figures: the share price is up 5% in the hours after closing (the results having been published “after the bell” of the stock market). It has already gained more than 30% since the start of the year.
Tesla and the secret weapon in times of recession
The essential : demand is picking up, but what are the prospects for 2023?
- “These price changes really make a difference to the average consumer,” Musk said at the earnings conference call, quoted by Reuters. According to him, demand is exploding: sales figures are currently double those of production.
- For the rest of the year: recession or no recession? For Musk, it will indeed be the case, he continues. But despite a “difficult recession”, he is not afraid for Tesla: “Demand will be strong despite a likely contraction in the automotive market as a whole. »
- A recession is logically difficult for automakers, as it is an expensive purchase that consumers are likely to put off. Manufacturers must then cut prices to continue to attract customers. In addition, raw material prices are likely to soar, especially for EV manufacturers.
- And this is where Tesla indeed holds an advantage, a “nuclear option”. Its profit margins per vehicle are much higher than those of competitors (seven times that of Toyota, for example), giving it more leeway to cut prices.
2 million vehicles in 2023
In the future : Musk sets the bar high.
- The boss of Tesla adds that he could produce and sell two million vehicles in 2023. This is a little more than the figure put forward by Tesla, namely 1.8 million (which would also be slower growth than the others). years: 37% against an average of 50).
- Musk also gives news regarding the Cybertruck. Something to disappoint fans: series production is postponed until next year.