Tesla (NASDAQ: TSLA) announced its 2022 Q2 financial results on July 20, 2022. According to the announcement, total revenues, income from operations, and net income were up 42%, 88% and 98%, respectively (YoY, 3 months). In addition, adjusted EBITDA was up 52% (YoY 3 months).
According to the announcement, total GAAP gross margin was 25% (up 89bp, YoY) and operating margin was 14.6% (up 358bp, YoY). On the other hand, automotive gross margin was 27.9% (down 46bp, YoY).
These changes in profitability were impacted by rise in average selling price (ASP), growth in vehicle deliveries, the higher raw materials and commodities costs etc., as well as shutdown of the Shanghai Gigafactory.
As of 2022 Q2, more than 100,000 North American Tesla drivers have access to the full self-driving system beta. According to the company, cumulative miles driven by its customers using City Streets supervised autonomy continue to grow at an unprecedented scale.
Tesla will soon re-launched the Enhanced Autopilot option in North America, for those customers who are only interested in highway autonomy.
Enhancing self-driving functions through machine learning has potentials to give Tesla an edge over its competitors in the future. According to the past announcements, Tesla is also considering offering a subscription to self-driving system. We think that it could lead to a significant improvement in Tesla’s profitability.
- Watanabe & Brothers’ Investment is holding shares of Tesla.
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