Summary

• Tesla Motors design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage system.
• The company operate as two reportable segments automotive and energy generation & storage.
• In 2022, Tesla has deployed 1.98 GWh of energy storage products and 154 megawatts of solar energy systems through the second quarter.
• Future tesla products includes specialized consumer electric vehicles in Cybertruck and the new Tesla Roadster and a commercial electric vehicle in Tesla Semi

Tesla Motors (Nasdaq:TSLA) design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage systems, and offer services related to its products.

Recent developments

Tesla Announces a Three-for-One Stock Split ¹

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.

Financial Highlights

In 2022, Tesla has produced 563,987 vehicles and delivered 564,743 vehicles through the second quarter, despite ongoing supply chain challenges and factory shutdowns. Tesla is currently focused on increasing vehicle production and capacity, improving and developing battery technologies, improving its FSD capabilities, increasing the affordability and efficiency of its vehicles and expanding its global infrastructure.²

In 2022, Tesla has deployed 1.98 GWh of energy storage products and 154 megawatts of solar energy systems through the second quarter. Tesla is currently focused on ramping production of energy storage products, improving its Solar Roof installation capability and efficiency, and increasing market share of retrofit and new build solar energy systems.

During the three and six months ended June 30, 2022, the company recognized total revenues of $16.93 billion and $35.69 billion, respectively, representing increases of $4.98 billion and $13.34 billion, respectively, over the same periods ended June 30, 2021. The company continue to ramp production, build new manufacturing capacity and expand its operations to enable increased deliveries and deployments of its products and further revenue growth.

During the three and six months ended June 30, 2022, its net income attributable to common stockholders was $2.26 billion and $5.58 billion, respectively, representing favorable changes of $1.12 billion and $4.00 billion, respectively, over the same periods ended June 30, 2021. The company continue to focus on improving its profitability through production and operational efficiencies.

The company ended the second quarter of 2022 with $18.92 billion in cash and cash equivalents and marketable securities, representing an increase of $1.21 billion from the end of 2021. The company's cash flows provided by operating activities during the six month period ended June 30, 2022 was $6.35 billion, representing an increase of $2.58 billion compared to $3.77 billion during the same period ended June 30, 2021. Capital expenditures amounted to $3.50 billion during the six month period ended June 30, 2022, compared to $2.85 billion during the same period ended June 30, 2021. Sustained growth has allowed its business to generally fund itself, and the company will continue investing in a number of capital-intensive projects in upcoming periods.

Business Overview

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.³

The company operate as two reportable segments:  automotive and (ii) energy generation and storage.

Automotive

Model 3

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

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

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.

Manufacturing Facilities

References

1. ^ https://ir.tesla.com/press-release/tesla-announces-three-one-stock-split
2. ^ https://fintel.io/doc/sec-tesla-inc-1318605-10q-2022-july-25-19198-5967
3. ^ https://fintel.io/doc/sec-tesla-inc-1318605-10k-2022-february-07-19030-6646