Highlights From Tesla's Q3, 2022 Earnings Call
Tesla's Q3, 2022 earnings call just happened and there are some key highlights to talk about. We'll go over them now.
Just Under 50% Delivery Growth for 2022
Tesla has guided for just under 50% delivery growth for 2022. That means about 450,000 vehicles will be delivered in Q4, 2022. This will be another record delivery quarter for Tesla.
Tesla also guided for future growth of around 50% for future years and that they would sell every vehicle make for as long as they could see into the future.
4th Quarter Deliveries Will Be Epic
Elon Musk was certainly looking to keep things positive on the Tesla earnings call. His good energy is appreciated because the world environment and macro economic conditions are not great right now. It is up to Elon Musk, as the CEO of Tesla, to rally his employees and use his leadership to make a great 4th quarter happen.
A $5 Billion to $10 Billion Share Buy Back Program Will Probably Happen
Many of Tesla's retail investors have urged Tesla to consider a buy back program. It looks like Tesla has heard this request and is going to do something about it. A share buy back program means Tesla will spend some of their money to buy Tesla stock for the company internally.
I think this is a wise choice and Tesla shares are at very low and depressed levels right now.
Giga Berlin and Giga Texas Caused Weaker Gross Margins
Giga Berlin and Giga Texas are Tesla's latest giga factories and, unfortunately, they have ramped slower than anticipated. The beginning stages of a factory are costly and that cost is taking away some of Tesla's gross margins. Once these factories are up and running fully though, watch out, Tesla's margins will be higher than they've ever been before.
The $30K Model Will Sell More Volumes Than All Other Vehicles Combined
Tesla's next vehicle was thought to be the Model 2, which would be the end of all EVs. However, Elon Musk has made it clear that the next generation Tesla vehicle will be there robotaxi vehicle and most likely will have no pedals or a steering wheel and cost around $25,000 to $30,000.
What I think would be interesting about this is if Tesla had a control panel on a screen that allowed someone to take over and drive, but would just tap on the screen to drive instead of using a steering wheel, the same with accelerating. I think this is necessary in case the vehicle ever has an issue and needs manual intervention.
4680 Batteries At 1K Cars Per Week, 300% From Last Quarter
The 4680 batteries are finally looking like they might reach volume production after an initial slow start. Any new project is going to take time. This is one of Tesla's most important projects and will greatly reduce the costs of their vehicles.
Market Cap Would Be More Than Apple and Saudi Aramco
Elon Musk said that one day, Tesla could be worth more than Apple and Saudi Aramco combined. That's an interesting thought. Could Tesla truly get that big? And if it doesn't happen now and in the future, how big does it look like?
I'm thinking about why Elon Musk would have said that and it is probably to ease investors in Tesla who think the company is going to go to lower levels.
All in all, it was a good earnings call with Elon Musk looking to give good energy to the future and we will see how Tesla does moving forward.
Do you think this was a good earnings call? If so or if not, why do you think that?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.