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 Tesla quarterly report

Tesla Inc. (TSLA) yesterday after the closing of the markets published a report for 1 m2. 2022 (1Q22). Revenue jumped 80.5 percent to $18.76 billion. Adjusted net income per share (non-GAAP EPS) was $3.22, compared to $0.93 a year earlier, compared to $2.54 in the most recent quarter. Analysts had forecast average revenue of $17.6 billion and non-GAAP EPS of $2.26, according to FactSet. Adjusted EBITDA jumped 173% to $5.02 billion. Free cash flow (FCF) of $2.23 billion compared to $293 million in 1Q21. Cash and cash equivalents amount to more than $17.5 billion, and net debt is negative. 

Sectoral revenues 

Automotive segment revenues in 1Q22 jumped 87.3% to $16.86 billion. Automobiles account for 90% of Tesla's revenue. Revenue in the energy segment (energy generation and storage) increased by 24.7% and amounted to $616 million. Revenue in the "services and other" segment increased by 43.2% to $1.28 billion. for CO2 emissions was 30% in the reference quarter compared to the 22% in 1Q21.

Manufacturing results

In 1Q22, 305,400 electric vehicles (EVs) were produced, which is 69.4% more than in 1Q21, but fewer than 433 electric vehicles than in 4Q21. This is mainly due to the Chinese New Year and lockdowns in China due to the coronavirus outbreak. More than 95% of all cars produced are budget Model 3 and Model Y, the rest are high-end Model S and Model X models.

In 1Q21, 48 MW of solar panels were installed, which is 48% less than a year earlier. Tesla installed 846 MWh of energy storage systems, up 90% from 1Q21.

The Supercharger network of charging stations increased by 38% to 3,724 units. compared to 1Q21, and at the end of 4Q21, there were 3476 units. The number of charging stations (Supercharger connectors) increased by 37.3% and amounted to 33.66 thousand units.

Provide

The company expects to produce more than 1.5 million electric vehicles by the end of 2022, which is in line with analysts' consensus forecasts. In particular, the company hopes that production in Berlin will produce up to 1,000 electric vehicles per week by the end of the month and 10,000 electric vehicles per week by the end of the year.

Comment

The results are exceptional. The company maintains the high growth rates in its core business. Although the production and shipping figures were almost identical to the previous quarter, the company's revenues increased by 6% over the same period and adjusted net income by almost 30%. In many ways, this was facilitated by the repeated increase in prices for electric vehicles. When prices go up, we see continued demand. The company manages to shift inflation and logistical problems to the end-user. As we know, most European car manufacturers recorded a sharp decline in sales in 1Q21. Tesla is currently trading at a P/S multiple of 19. A business/EBITDA multiple values of 77, a P/E of 110.

Investments in Tesla are primarily associated with the risk of high inflation when the company will not be able to pass it on to the consumer, and demand will fall or not grow at the same rate as production capacity. Another risk is supply chains, which are heavily dependent on geopolitics, including chips and Taiwan. Investors should be aware of these risks. The shares are expensive, but we think Tesla shares should be held in the portfolio, at 1% maximum, with a buyback option when the valuation is satisfactory.

• Tesla shares rose 3.2% in yesterday's trading with a closing price of $1,008. During yesterday's main trading session, growth exceeded 8%.

• Shares of Tesla Inc. (TSLA) are part of the SUVE CM portfolio.

• During the time since our first publication SUVE CM portfolio in September 2020, Tesla's shares have soared by 128%.