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Tesla announced its financial results for the fourth quarter of 2022 on Wednesday afternoon. The company’s revenue was $24.3 billion, up 37% from Q4 2021. Automotive had the highest revenue at $21.3 billion, up 33% from Q4 2021. This equates to net income of $3.7 billion under generally accepted accounting practices (GAAP), a staggering 59% increase from Q4 2021.
This means that Tesla performed well in 2022 despite underperforming sales projections. Automotive revenue he increased 51% compared to 2021, bringing in $71.5 billion. Total revenue increased by $81.4 billion from the same period last year. Operating expenses accounted for his $7.2 billion, and when GAAP is applied, Tesla ended the year with his $12.6 billion net profit. Free cash flow decreased 49% to $1.4 billion.
Tesla recognized revenue for its highly controversial “fully self-driving” assist earlier this year after rolling out a beta to all Tesla owners. But despite CEO Elon Musk’s claims that the company’s financial future depends on his FSD, in 2022 he would only translate to $324 million. Tesla’s financial presentation claims that it “expects to recognize approximately $1 billion in deferred revenue remaining with such customers each time a software update is delivered.” Elsewhere in his financial presentation, he claims to have around 400,000 FSD users in the US and Canada.
Regulatory credits for clean vehicles played a more significant but still minor role in the company’s profitability, contributing $1.8 billion to the bottom line. That’s a 21% increase from 2021, and the biggest revenue Tesla has made from regulatory credit, despite concerns that the introduction of EVs from his traditional OEMs will deplete this. Perhaps to this end, the company says it is working hard not to have to deliver so many cars in his third month of each quarter.
As we reported earlier this month, in 2022 Tesla will build 1,369,611 cars, of which 1,298,434 will be Model 3 or Y. This means that production of these models has increased by 43% year-on-year. But in total he was only able to find housing for 1,313,851 cars. That was a 40% year-on-year increase, but less than 50% year-on-year growth that automakers promised investors. Plus, this means Tesla is sitting in his 71,000-plus unsold EVs.
Tesla’s solar business will remain flat in 2022, growing just 1% year-on-year in megawatts of solar power. However, the company rolled out his 6.5 gigawatt hours of battery storage, a 64% increase from last year.
In its outlook statement, Tesla remains optimistic and reiterates its target of 50% annual growth, but says it “may grow faster in some years and slower in others.” There is a note of caution. By 2023, he will deliver 1.8 million cars. Tesla also claims it is in the tools stage for a Cybertruck pickup that will begin production in Texas later this year.
