- Tesla, Inc design, develop, manufacture, sell and lease fully electric vehicles, also operates in energy generation and storage system.
- Automotive revenue reported in the fourth quarter of 2022 is $21,307 million, up 33% from the same quarter a year earlier. Total revenue is $24,318 million, an increase of 37% YoY. Total gross profit of the company during the quarter is $5,777 million, up from $4,847 million from the same quarter a year earlier. Net income for the quarter is $3,687 million, up 59% from $2,321 million YoY.
- In 2022, the company has reported $71,462 million in total annual automotive revenue, up from $47,232 million a year earlier. Gross profit reported for the year 2022 is $20,853 million, as compared to $13,606 million a year earlier.
- The company reported net income for the year 2022 of $12,587 million, as compared to $5,644 million. Earning per share (EPS) for 2022 is $4.02 as compared to $1.87 a year earlier.
- In February 2023, Tesla recalls as many as 362,758 vehicles equipped with Full Self-Driving Beta (FSD Beta) software over crash concerns. The company will release an over-the-air software update, free of charges, to fix the issue.
- Future tesla products includes specialized consumer electric vehicles in Cybertruck and the new Tesla Roadster and a commercial electric vehicle in Tesla Semi
Brief Company Overview
Tesla, Inc. (NASDAQ: TSLA) is an American artificial intelligence company that designs, develops, manufactures, sells, and leases high-performance fully electric vehicles and energy generation and storage systems. The company was established in 2003 by Martin Eberhard and Marc Tarpenning. Initially, the company was named Tesla Motors (now Tesla, Inc) - after Nikola Tesla, the the Serbian American inventor. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
Tesla, Inc. has two reportable segments - automotive, and energy generation and storage. The automotive segment deals with fully electric vehicles including post-sale services and the energy generation storage segment deals with solar energy generation and related services. The company currently produces four models of consumer vehicles - Model 3, Model Y, Model S, and Model X. The energy generation segment sells Powerwall, Megapack, and Solar Roof. As on December 31, 2022, the company and its subsidiaries employed 127,855 employees, a 29,000 year over year increase. The company has four car assembling factories: Austin, Texas and Fremont, California in the United States, Shanghai in China and Berlin in Germany. The first two mainly serve the North American market and have combined production capacities of 900,000 vehicles per year.
Elon R. Musk is the Technoking of Tesla who serves a CEO and Director. Tesla, Inc. is listed on NASDAQ with the trading code 'TSLA'. The company has 6,000 common shares authorized and on December 31, 2022, 3,164 shares outstanding. Tesla had a 5-for-1 stock split in August 2020 and again a 3-for-1 stock split on August 24, 2022.
Tesla Announces a Three-for-One Stock Split
August 5, 2022; Tesla, Inc. announced that the Board of Directors has approved and declared a three-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each stockholder of record on August 17, 2022 will receive a dividend of two additional shares of common stock for each then-held share, to be distributed after close of trading on August 24, 2022. Trading will begin on a stock split-adjusted basis on August 25, 2022.
Tesla recalls vehicles over safety concerns
In February 2023, Tesla recalls as many as 362,758 vehicles equipped with Full Self-Driving Beta (FSD Beta) software over crash concerns. The company will release an over-the-air software update, free of charges, to fix the issue.
The fourth quarter of 2022 has seen highest ever sales, operating income and net income for Tesla in any quarter. Automotive revenue reported in this quarter is $21,307 million, up 33% from the same quarter a year earlier. Total revenue is $24,318 million, an increase of 37% YoY. Total gross profit of the company during the quarter is $5,777 million, up from $4,847 million from the same quarter a year earlier. Net income for the quarter is $3,687 million, up 59% from $2,321 million YoY. Earnings per share (EPS) for the quarter is $1.07, up from $0.68. Net cash inflow from operating activities is $3,278 million. Cash, cash equivalents and investments balance is $22,185 million, up 25% from $17,707 million. In the automotive segment the company has produced 20,163, and 419,088 units of Model S/X, and Model 3/Y, respectively, up 44% on an average; and delivered 17,147 and 388,131 units, respectively, up 31% on an average.
Annual Performance Highlights
Tesla, Inc. has two reportable segments - Automotive & Services, and Energy Generation and Storage. Automotive sales revenue includes revenues related to cash and financing deliveries of new Model S, Model X, Semi, Model 3, and Model Y vehicles, including access to our FSD features, internet connectivity, free Supercharging programs and over-the-air software updates. In 2022, the company has reported $71,462 million in total annual automotive revenue, up from $47,232 million a year earlier. The total automotive revenue includes automotive sales revenue, automotive regulatory credits, automotive leasing revenues, and services and other revenues. Automotive sales revenue increased $24,230 million, or 51%, in the year ended December 31, 2022 as compared to the year ended December 31, 2021, primarily due to an increase of 347,024 Model 3 and Model Y deliveries, and an increase of 38,183 Model S and Model X deliveries year over year.
Energy generation and storage revenue includes sales and leasing of solar energy generation and energy storage products, financing of solar energy generation products, services related to such products and sales of solar energy systems incentives. Total revenue from this segment is $3,909 million in 2022, up from $2,789 million. Energy generation and storage revenue increased $1,120 billion, or 40%, in the year ended December 31, 2022 as compared to the year ended December 31, 2021, primarily due to an increase in energy storage deployments of Megapack, Powerwall and higher average selling price of Megapack, as well as on solar cash and loan deployments driven by price increases in 2022.
Total automotive cost of revenue is $51,108 million, up 53% in line with the increase in total revenue generated. Total cost of revenue for the other segment is $9,501 million, up 39% year on year. Gross profit reported for the year 2022 is $20,853 million, as compared to $13,606 million a year earlier. The company has invested in Research and Development $3,075 million and $2,593 million for the years 2022 and 2021, respectively. The company reported net income for the year 2022 of $12,587 million, as compared to $5,644 million. Earning per share (EPS) for 2022 is $4.02 as compared to $1.87 a year earlier.
The company design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage systems, and offer services related to its products. The company generally sell its products directly to customers, including through its website and retail locations. The company also continue to grow its customer-facing infrastructure through a global network of vehicle service centers, Mobile Service technicians, body shops, Supercharger stations and Destination Chargers to accelerate the widespread adoption of its products. The company emphasize performance, attractive styling and the safety of its users and workforce in the design and manufacture of its products and are continuing to develop full self-driving technology for improved safety. The company also strive to lower the cost of ownership for its customers through continuous efforts to reduce manufacturing costs and by offering financial and other services tailored to its products. The company's mission to accelerate the world’s transition to sustainable energy, engineering expertise, vertically integrated business model and focus on user experience differentiate it from other companies.
The company operates in two reportable segments: automotive and energy generation and storage.
Model 3 is a four-door mid-size sedan that the company designed for manufacturability with a base price for mass-market appeal. The company currently manufacture Model 3 at the Fremont Factory and at Gigafactory Shanghai.
Model Y is a compact sport utility vehicle (“SUV”) built on the Model 3 platform with seating for up to seven adults. The company currently manufacture Model Y at the Fremont Factory and at Gigafactory Shanghai.
Model S and Model X
Model S is a four-door full-size sedan and Model X is a mid-size SUV with seating for up to seven adults. Model S and Model X feature the highest performance characteristics and longest ranges that the company offer in a sedan and SUV, respectively, and the company manufacture both models at the Fremont Factory. In 2021, the company began delivering new versions of the Model S and Model X, which offer higher performance and range.
Future Consumer and Commercial Electric Vehicles
Tesla has also announced several planned electric vehicles to address additional vehicle markets, including specialized consumer electric vehicles in Cybertruck and the new Tesla Roadster and a commercial electric vehicle in Tesla Semi. The company plan to continue leveraging developments in its proprietary Full Self-Driving (“FSD”), battery cell and other technologies.
Status of production of each of its announced vehicle models in production and under development
|Production Location||Vehicle Model(s)||Production Status|
|Fremont Factory||Model S / Model X||Active|
|Model 3 / Model Y||Active|
|Gigafactory Shanghai||Model 3 / Model Y||Active|
|Gigafactory Berlin-Brandenburg||Model Y||Active|
|Gigafactory Texas||Model Y||Active|
|TBD||Tesla Semi||In development|
|TBD||Tesla Roadster||In development|
|TBD||Robotaxi & Others||In development|
Energy Generation and Storage
Energy Storage Products
Powerwall and Megapack are its lithium-ion battery energy storage products. Powerwall is designed to store energy at a home or small commercial facility. Megapack is an energy storage solution for commercial, industrial, utility and energy generation customers, multiple of which may be grouped together to form larger installations of gigawatt hours (“GWh”) or greater capacity.
The company also continue to develop software capabilities for remotely controlling and dispatching its energy storage systems across a wide range of markets and applications, including through its real-time energy control and optimization platforms.
Solar Energy Offerings
The company sell retrofit solar energy systems to customers and channel partners and also make them available through power purchase agreement (“PPA”) arrangements. The company purchase most of the components for its retrofit solar energy systems from multiple sources to ensure competitive pricing and adequate supply. The company also design and manufacture certain components for its solar energy products.
The company sell its Solar Roof, which combines premium glass roof tiles with energy generation, directly to customers, as well as through channel customers. The company continue to improve its installation capability and efficiency, including through collaboration with real estate developers and builders on new homes.
|Primary Manufacturing Facilities||Location||Owned or Leased|
|Gigafactory Texas||Austin, Texas||Owned|
|Fremont Factory||Fremont, California||Owned|
|Gigafactory Nevada||Sparks, Nevada||Owned|
|Gigafactory Berlin||Grunheide, Germany||Owned|
|Gigafactory Shanghai||Shanghai, China||Owned|
|Gigafactory New York||Buffalo, New York||Leased|
Tesla Motors was established in 2003 and subsequently renamed Tesla, Inc. in 2017. The initial purpose of the company was to develop electric sports car. The company was established by two entrepreneurs Martin Eberhard and Marc Tarpenning. Name of the company comes from the Serbian American inventor Nikola Tesla (1856-1943) who discovered and patented the rotating magnetic field, the basis of most alternating-current machinery. Eberhard was Tesla's chief executive officer (CEO) and Tarpenning was the chief financial officer (CFO) of the company. Funding for Tesla, Inc came from a variety of sources including $30 million from the PayPal cofounder Elon Musk, who served as the chairman of the company beginning in 2004.
In 2008 Tesla, Inc released its first car, the completely electric Roadster. In company tests, it achieved 245 miles (394 km) on a single charge, a range unprecedented for a production electric car. Additional tests showed that its performance was comparable to that of many gasoline-powered sports cars: the Roadster could accelerate from 0 to 60 miles (96 km) per hour in less than four seconds and could reach a top speed of 125 miles (200 km) per hour. The lightweight car body was made of carbon fibre. The Roadster produced no tailpipe emissions, as it did not use an internal-combustion engine. Tesla, Inc found that the car attained efficiency ratings that were equivalent to a gasoline mileage of 135 miles per gallon (57 km per litre). The vehicle’s electric motor was powered by lithium-ion cells.Despite a federal tax credit of $7,500 for purchasing an electric vehicle, the Roadster’s cost of $109,000 made it a luxury item.
In late 2007 Eberhard resigned as CEO and president of technology and joined the advisory board of the company. It was announced in 2008 that he had left the company, though he remained a shareholder. Tarpenning, who was vice president of electrical engineering, supervising the development of electronic and software systems for the Roadster, also left the company in 2008. Musk took over as CEO. In 2010 Tesla’s initial public offering raised some $226 million.
Under the leadership of Elon Musk, Tesla stopped the production of Roadster and introduced Model S, Model 3, and Model Y in turn over the years. The Model S was introduced in 2012. This model had system to carry its battery in the back of the car also it had its underneath the floor, which gave extra storage space in back and improved handling because of its low center of gravity; this battery placement was used on later Tesla models. In 2014, the company has introduced its Tesla Autopilot, a form of semiautonomous driving in Model S. Starting from 2012, the company started building Superchargers across the United States that allowed Tesla owners charge their vehicles quickly without any extra costs.
Beginning in 2016, Tesla started building Gigafactories to produce batteries and vehicles, first of which was established in Reno, Nevada, later on, in Buffalo, New York, and Shanghai, China.
Because of demand for a more inexpensive vehicle, the Model 3, a four-door sedan with a range of up to 353 miles (568 km) and a price of $35,000, began production in 2017. The car had an all-glass roof, and most controls were on a 15-inch (38-cm) central touchscreen. The Model 3 became Tesla’s best-selling model and the best-selling electric car of all time, surpassing the Nissan Leaf.
Tesla, Inc acquired the solar panel company SolarCity in 2016. Before that the company branched out into solar energy products in 2015. In 2017 the company changed its name to Tesla, Inc., to reflect that it no longer sold just cars.
On August 7,2018, Tesla chairman and CEO Elon Musk tweeted to declare than he has arranged private funding and he is willing to take the company private, which he has confirmed in a subsequent tweet. Musk proposed a price of $420 for each share of Tesla which would amount to a $70 billion deal. In effect, the price of Tesla stock jumped by over 6% on August 7, 2018 and trade of Tesla stock was suspended at NASDAQ. SEC also complaint that despite notifying the market in 2013 that it intended to use Musk’s Twitter account as a means of announcing material information about Tesla and encouraging investors to review Musk’s tweets, Tesla had no disclosure controls or procedures in place to determine whether Musk’s tweets contained information required to be disclosed in Tesla’s SEC filings. Nor did it have sufficient processes in place to that Musk’s tweets were accurate or complete. However, later on, Musk and Tesla had agreed to settle the charges against them without admitting or denying the SEC's allegations. The settlements required replacement of Elon Musk as chairman of the board of the company and his ineligibility for three years to be re-elected as chairman. However, Musk continued serving as the CEO. A new committee will be established to oversee Musk's communications. And Musk and Tesla each will pay separately $20 million in penalty - the $40 million is to distributed among the harmed investors.But SEC brought complaints against Elon Musk for this move of his. The SEC’s complaint alleged that, in truth, Musk knew that the potential transaction was uncertain and subject to numerous contingencies. Musk had not discussed specific deal terms, including price, with any potential financing partners, and his statements about the possible transaction lacked an adequate basis in fact.
Tesla released another crossover, the Model Y, in 2020. The Model Y was smaller and less expensive than the Model X and shared many of the same parts with the Model 3. Sales of the Model Y quickly became comparable to that of the Model 3, and Musk expressed confidence that it would become Tesla’s best-selling model. Tesla announced several models to be released early in the 2020s, including a second version of the Roadster, a semi-trailer truck, and a pickup truck, the Cybertruck, which had a boxy angular design that excited controversy when it was first unveiled.
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