Matters:
Tesla released the first quarter financial report of 2022. 1q22 achieved an operating revenue of US $18.756 billion, a year-on-year increase of 81%, and a net profit of US $3.318 billion, a year-on-year increase of 658%; Net operating cash flow was US $3.995 billion, a year-on-year increase of 143%.
Ping An View:
The revenue of single vehicle increased month on month, and the net profit reached a new high.
In terms of revenue, 1q22 automobile business revenue was US $16.861 billion, a year-on-year increase of 87%, a month on month increase of 6%, and sales accounted for 89.9%; The average price of 1q22 single car was 54400 US dollars, with a year-on-year increase of 11.7% and a month on month increase of 5.1%. The growth of single car revenue was mainly due to: 1) the increase in the sales proportion of high priced models; 2) The price of raw materials rose sharply, and the company followed the rise in product prices.
In terms of gross profit, the gross profit margin of 1q22 automobile business was 32.85%, with a year-on-year increase of 6.4pct and a month on month increase of 2.3pct. The increase in gross profit margin was mainly due to the decline in manufacturing costs caused by the continuous improvement of scale effect and cost control ability; Although the price of raw materials fluctuates greatly, the company can control the profit at a reasonable and relatively high level through more flexible pricing strategy under the condition of continuous improvement of product demand; In the future, the mass production of 4680 batteries will also further reduce the production cost.
In terms of net profit, 1q22 made a profit of US $3.318 billion, a year-on-year increase of 658% and a month on month increase of 43%, continuing to set a new high in net profit in a single quarter; The net interest rate was 17.7%, with a year-on-year increase of 15.5pct and a month on month increase of 4.6pct. Q1 R & D expenses were US $865 million, an increase of 17% month on month, and marketing and administrative expenses were US $990 million, a decrease of 34% month on month; In the first quarter, the regulatory integral income reached US $680 million, with a year-on-year increase of + 31% and a month on month increase of + 116%; At the same time, $48 million CEO reward increased non cash SBC expenses. On the whole, during the first quarter, expenses were significantly reduced and cost control was effective. With the accelerated growth of software related businesses, the company’s profits are expected to rise again.
In terms of cash flow, 1q22 net operating cash flow was US $4 billion, a year-on-year increase of 143% and a month on month decrease of 13%; Free cash flow was USD 2.23 billion, with a year-on-year increase of 660%; Cash reserves were sufficient, with cash and cash equivalents of US $17.5 billion in the first quarter. With the rapid growth of automobile sales, the company’s cash flow has improved significantly and the financial expenses have been effectively controlled.
The delivery volume reached a new high and the global market increased. 1q22 delivered 310000 vehicles, a year-on-year increase of 68% and a slight increase of 0.5% month on month; Among them, the delivery volume of Model3 / y reached 295000, with a year-on-year increase of 61.5% and a slight decrease of 0.5% month on month. The global average inventory days were 3 days, falling to a new low level in the quarter. In terms of regions, the sales volume of 1q22 in the United States, China and Europe is expected to reach 13 / 11 / 60000 respectively. In terms of American factories, Fremont factory has a design capacity of Shanghai Pudong Development Bank Co.Ltd(600000) vehicles, and there is still potential to continue to expand production capacity in the future; The Austin plant in Texas has started to produce modely, which is currently climbing, and cybertruck will be produced later. In terms of Chinese factories, the design capacity is more than 450000. The factories have been closed for several weeks due to the impact of the epidemic, and some production has been resumed. In terms of European factories, the Berlin factory began production in March 2022. Nearly half of the new cars delivered by the company in the first quarter will be equipped with lithium iron batteries, and the models of Texas and Berlin factories will be equipped with 2170 or 4680 (CTC) batteries. The company expects that the growth rate of global delivery in 22 years will be more than 50%, that is, the delivery scale of about 1.5 million units will be realized.
Automatic driving accelerates, and energy storage products are in short supply. In terms of automatic driving, the FSD beta development will carry out seven consecutive software updates in 2022. The company aims to release the FSD beta to all American FSD customers by the end of 2022. In terms of energy storage, 1q22 has an installed capacity of 846mwh, an increase of 90% year-on-year and a decrease of 13% month on month. As the demand is still much higher than the production capacity, the growth is limited by the supply; The company is building a dedicated Megapack plant to meet the growing demand. Tesla‘s continuous upgrading ability in key parts such as batteries, autonomous driving and software is an important factor in obtaining product premium and consumer stickiness. Once the new profit model is mature, the company’s profitability is expected to be greatly improved.
Investment suggestion: Tesla‘s net profit reached a new high in the first quarter of 2012. Despite the increase of electric vehicle models and intensified competition, it still maintains strong customer stickiness, and overcomes the adverse impact of the rise of raw materials and maintains stable profitability by relying on the continuous improvement of production and marketing, the continuous output and upgrading of high-quality products and the continuous optimization of costs; At the same time, the battery and automatic driving show industry-leading innovation and layout. Paying attention to the industrial chain opportunities brought by the continued volume of Tesla products, focusing on the industry chain opportunities brought by the continued growth of Tesla products, focusing on the industrial chain opportunities that are being driven by the continued volume of Tesla products, and strongly recommending the industry chain opportunities brought by the continued volume of Tesla products, strongly recommending the industry chain opportunities brought by the continued volume of Tesla products, strongly recommending the industry chain opportunities that are being driven by the continued volume of Tesla products, strongly recommending the industry chain opportunities brought by the continued volume of Tesla products, strongly recommending 3 Beijing Zznode Technologies Co.Ltd(003007) 50 Contemporary Amperex Technology Co.Limited(300750) Contemporary Amperex Technology Co.Limited(300750) , pay attention to Guangzhou Tinci Materials Technology Co.Ltd(002709) , Shenzhen Senior Technology Material Co.Ltd(300568) , Yunnan Energy New Material Co.Ltd(002812) , Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) .
Risk tips: 1) the risk that the policy strength is less than expected: if China’s foreign policies soften or change the support for the realization of new energy vehicles, resulting in the introduction of policies less than expected, it will significantly affect the overall scale of the new energy vehicle market; 2) Consumer trust risk caused by electric vehicle Spontaneous Combustion Accident: consumers pay more and more attention to the safety of electric vehicles. If the spontaneous combustion event is not effectively curbed, it may lead to a crisis of consumer trust and have a negative impact on product sales; 3) Risk of technical route change: new energy vehicles are still in the period of rapid technological change. If the industrialization process of the next generation technology exceeds expectations, it will have a significant impact on the existing industry pattern, and the early investment recovery capacity will be lower than expected.
