Tesla (NASDAQ: TSLA) announced its 2022 Q1 financial results on April 20, 2022. According to the announcement, total revenues were up 81%. In addition, operating income and net income were up 507% and 658%, respectively. Adjusted EBITDA was up 173%.
Under the inflationary environment of 2022 Q1, industrial prices have drastically risen. However, Tesla has improved its gross and operating margins to 32.9% and 19.2%, respectively. These figures are each up 636bp and up 1349bp year over year. In addition, the free cash flow was 1,828 million USD, and the FCF margin was 9.8%.

From 2022 Q4 to 2022 Q1, Berlin Gigafactory and Texas Gigafactory began their operation. Accordingly, Tesla continuously reduces their transportation and production costs through local and large-scale production.
In addition, Tesla continues to improve battery technology to diversify battery materials. It is because that batteries are the most expensive component of electric vehicles. According to the announcement, more than half of the batteries manufactured by Tesla in 2022 Q1 were nickel- and cobalt-free lithium-iron phosphate (LFP) batteries. Accordingly, Tesla reduced production costs by reducing the excessive dependency on rare metals. It is speculated that these efforts brought Tesla’s improved gross and operating profit margin.
Tesla, Inc. (NASDAQ: TSLA) Stock Chart
Important Notice
- Watanabe & Brothers’ Investment is holding shares of Tesla.
- This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products.
- Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs. In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’ Investment is not responsible for any liability.
- This report was originally prepared in English, and translated into the other languages with plugin utilizing Google Translation API. We hereby notify that the translations are provided only for the sake of reference, and any opinions or statements in this report should be interpreted in original English. We ask any investors reading this report to refer to the original financial statements issued by the company.