Tesla’s Q4 Profit Up 19% YoY, Solar & Storage Revenues Rise to $1.31 Billion
The company deployed 6.5 GWh of energy storage in 2022
Tesla recorded a revenue of $24.32 billion from all its businesses in the fourth quarter (Q4) of 2022, a year-over-year (YoY) of 37% compared to $17.72 billion in the previous quarter.
On a quarter-over-quarter (QoQ) basis, the revenue rose by 13% compared to $21.45 billion.
Tesla’s total gross profit for the quarter was $5.78 billion, up 19% YoY compared to $4.85 billion. Total gross profit increased by 7% QoQ compared to $5.38 billion.
The adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to $5.4 billion in Q4, a YoY jump of 32% from $4.09 billion. EBITDA went up by 8% QoQ compared to $4.97 billion.
The company’s total revenue in 2022 was $81.46 billion, a YoY growth of 51% compared to $53.82 billion.
Tesla’s total gross profit for 2022 was up 53% YoY from $13.61 billion to $20.85 billion in Q4.
The adjusted EBITDA for 2022 was $19.19 billion, a YoY growth of 65% compared to $11.62 billion.
Solar and Storage
The revenue contribution from energy generation and storage was $1.31 billion during the quarter, a YoY increase of 90% compared to $688 million. The revenue rose by 17% QoQ compared to $1.12 billion.
Energy storage deployments increased by 152% YoY in Q4 to 2.5 GWh, for a total deployment of 6.5 GWh in 2022, by far the highest level of deployments Tesla has achieved. Demand for Tesla’s storage products remains more than its ability to supply.
The company is in the process of ramping up production at its dedicated 40 GWh megapack factory in Lathrop, California, to address the growing demand. This factory should help to accelerate the growth of energy storage deployments.
Solar deployments increased by 18% YoY in Q4 to 100 MW. This is one of the strongest quarters in recent years. Despite supply chain challenges, Tesla deployed 348 MW of solar in 2022, the highest deployment since 2017. The company’s solar installation team continues to improve installation efficiency, enabling higher volumes and more robust economics.
Tesla’s automotive revenues totaled $21.31 billion in Q4, a 33% YoY surge from $15.97 billion and a QoQ increase of 31% from $18.69 billion.
The segment posted a gross profit of $5.52 billion during the quarter, a YoY spike of 13% from $4.88 billion during the same time last year.
“So, in 2022, we delivered over 1.3 million cars and achieved a 17% operating margin, the highest among any volume carmaker, I think maybe among any carmaker. While doing so, we generated $12.5 billion in net income and $7.5 billion in free cash flow,” said Tesla CEO, Elon Musk during the earnings call.
The rise in revenues was attributed to vehicle production and delivery growth. The company delivered 439,701 Model 3/Y cars and 17,147 Model S/X during the quarter.