TESLA Q2 EARNINGS CALL 2022

EV Channels Review

Tesla's Q2 2022 earnings call highlighted resilience amidst significant challenges, particularly the Shanghai factory shutdown. Elon Musk emphasized record production in June across Fremont and Shanghai, setting the stage for a strong second half, contingent on avoiding further 'force majeure' events. Key advancements include progress in Berlin and Austin factories, with Gigafactory Texas expected to exceed 1,000 vehicles per week. The company is currently reliant on 2170 cells for production, with 4680 cells being a focus for next year. Musk also noted the deployment of FSD Beta to over 100,000 owners and significant manufacturing innovations like large castings, reducing complexity and cost. The Cybertruck is still slated for mid-next year production, with Musk expressing high expectations. CFO Zach Kirkhorn detailed a sequential decline in automotive gross margin to 27.9%, attributed to Shanghai's idle capacity and ramp inefficiencies in new factories, alongside inflationary pressures. The energy business, however, achieved record gross profit. The company converted a majority of its Bitcoin holdings to fiat to maximize cash during the uncertain Shanghai lockdown period. Looking ahead, Tesla aims for 50% growth despite production challenges and expects continued global pricing increases due to backlog, balanced by macroeconomic cost increases.