The Q4 2022 earnings are in, and as expected Tesla beat earnings expectations with ease.
I'd be smiling ear-to-ear too, if I were in Elon's shoes. His Tesla team is outstanding.
This post will go over some of the highlights of the Tesla Q4 2022 report and its full year earnings. I will also share thoughts and impressions from many sources about how they see Tesla now and going forward in 2023.
The following are Q4 Earnings results and the street expectations.
Tesla Non-GAAP EPS:
Actual: $1.19
Consensus: $1.12
Automotive Gross Margin:
Actual: 24.3%
Consensus: 26.4%
Ross Gerber on an impressive Q4 Tesla Earnings
Here's a quick video ( 2:11 mins), where Ross Gerber Co-Founder, President and CEO of Gerber Kawasaki Wealth and Investment Management, shares his thoughts on Tesla's Q4 earnings.
Tesla Q4 video clip, created by Farzad Mesbahi. He has more Tesla videos here.
Dan Ives, Web Securities
Here are some Tesla Q4 Earning report observations from Daniel Ives, the Managing Director and Senior Equity Research Analyst for Web Securities. Dsn covers all the major tech companies, none better than Tesla.
“Dan Ives, Web Securities said: Demand story and commentary from Musk strong on Tesla’s earnings call. Volumes look strong out of the gate in January post price cuts and China a key dynamic. In our opinion this was a bullish call and realistic delivery numbers set for 2023. Street should digest this well.
“Demand story and commentary from Musk strong on Tesla’s earnings call. Volumes look strong out of the gate in January post price cuts and China a key dynamic. In our opinion this was a bullish call and realistic delivery numbers set for 2023. Street should digest this well, says Dan Ives.
“In Tesla's Super Bowl, Musk & Co. delivered in epic fashion with demand that is currently 2x production coming out of the gates in 2023 and laying out a 1.8 million delivery bogey. Bulls will cheer these results along with GM guidance better than feared. Price target to $200, says Dan Ives.
Dan Ives was right about the street liking what Elon Said during earnings call.
Key takeaways: Gene Munster, Rebecca Mulberg, Deep Water Asset Managment
Previously Gene Munster was managing director and senior research analyst at Piper Jaffray where he covered technology companies including Apple, Amazon, Google, and Facebook.
“Following the price cut, I was expecting guidance to fall between 15-20% for 2023. CFO Zach Kirkhorn guided gross margin ex credits to be above 20% for 2023. Given the company’s commentary to expect average selling price to decline by 7% this year, I see the 20% plus margin outlook as realistic. Gen said."
“If Tesla meets the internal delivery target for 2023, they'll increase delivery growth from 40% in 2022 to 50% in 2023. Expect 2023 gross margins to be above 20% ex credits, higher than the feared 16-19%. The Cybertruck is on track to start deliveries later this year along with hints of new models. The bottom line: The company appears to have made the right decisions to successfully navigate what will likely be a difficult year for the auto industry."
Here's an excellent video from Matt Pocius covering Tesla earning results
The Matt Pocius YouTube channel provides great content about Tesla
“Matt said: Tesla stock JUMPED in the after hours after the earnings call. Tesla stock investors feel that the call and the earnings report was fine, not bad nor great, it was as expected for the most part but Tesla stock reacted positive anyway!."
I've included some of the charts Matt speaks about in the video for your convenience. Take a look at the video above for in-depth overview of each one.
Here's Tesla Q4 earnings call quotes from the man himself: Elon Musk
“We do expect Cybertruck production to start some time this summer. Volume production (which is more important) won't happen until 2024. More Beta Cybertrucks are coming next month. The Cybertruck will have HW4. For 2023 Cybertruck will not be a significant contributor to the bottom line, but it will be next year (2024). I can't wait to drive it. It's the car I will drive personally; HW3 to HW4 retrofit is not needed."
“Trend is very strong towards use of FSD. And with each improvement enthusiasm increases. Tesla is really one of the worlds leading AI company on both the software side and hardware side. As for a general solution for Self Driving, who is close? We don't even know a distant second. I don't think it's a car company that we are aware of? Maybe someone will figure it out eventually."
“Tesla has seen the STRONGEST orders year to date than ever in history. We currently are seeing orders almost 2x the rate of production; We think demand will be good despite contraction in the auto market as a whole. We have a potential to do 2 million cars this year. We're not committing to that, but there would be demand for that. We have other products in development. We're not going to reveal them today, but It will blow people's minds when people see them."
Thanks to Tesla there's no turning back.
Now that the Tesla Q4 Earnings are a done deal, we can look forward to Q1 2023.
I think Tesla is going to continue to grow its EV lead and have a huge rest of the year. I see Tesla leading the world with innovative technology and that matters.
Elon Musk & Tesla are disrupting and transforming the auto industry in a huge way. There's no doubt about it, cars and trucks are going electric, and there's no turning back.
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