Q1’s performance exceeded expectations. The increase in the number of deliveries and the price increase of models promoted the growth of revenue, and the gross profit of automobile business exceeded 30%. On April 21, Tesla released its Q1 performance in 2022. In 22q1, it achieved a total revenue of US $18.756 billion, a year-on-year increase of 81%, of which the automobile revenue was US $16.861 billion, a year-on-year increase of 87%; The total gross profit was US $5.46 billion, a year-on-year increase of 147%, and the gross profit margin was 29.1%, a year-on-year increase of 779bp; The gross profit of automobile business was US $5.539 billion, a year-on-year increase of 132%, and the gross profit margin of automobile business was 32.9%, a year-on-year increase of 636bp; The net profit attributable to Tesla common shareholders was US $3.318 billion, a year-on-year increase of 658%; Adjusted EPS was $3.22, a year-on-year increase of 246%; Cash equivalent reserves of USD 17.505 billion; R & D investment was 865 million US dollars, a year-on-year increase of 30%; It is worth mentioning that as of 22q1, Tesla‘s long-term debt (excluding automobile and energy product financing) has been less than $100 million.
Due to the rise in the price of upstream raw materials, Tesla has made three price adjustments for Model3 and modely in March 2022. According to the 22q1 performance press conference, the company said that there are sufficient orders on hand, and the battery raw materials account for about 10% – 15% of the total cost. The subsequent pricing adjustment depends on whether the change of raw material cost affects the company’s financial situation. We believe that the increase in the number of deliveries in the first quarter and the increase in the price of models promoted the substantial growth of revenue, the gross profit margin of the automobile business exceeded 30%, the demand side was strong, and the profitability of the company was strong; At present, the company has sufficient liquidity, which can effectively support the subsequent capacity expansion plan and other expenditures.
At present, capacity expansion is the primary goal, and the capacity of the two new factories continues to climb. In terms of production and delivery, 22q1 company produced 305400 vehicles, a year-on-year increase of 69%, of which model 3 and model y produced 291200 vehicles, a year-on-year increase of 61%; In the first quarter, the company delivered 310000 vehicles, a year-on-year increase of 68%, of which 295300 vehicles were delivered by Model3 and modely, a year-on-year increase of 62%, and 14700 vehicles were delivered by models and modelx, a year-on-year increase of 625%.
In terms of capacity expansion, the Berlin plant and the Texas plant officially started production and delivery in March and April of 22, respectively. At present, the capacity is climbing. Dezhou factory is the first factory of 4680 battery and integrated chassis. The company said that the production capacity of 4680 battery still needs to climb for some time. Dezhou factory is expected to have the ability to produce model y with 4680 structured battery pack and 2170 unstructured battery pack at the same time by the end of 2022. At the same time, the Berlin factory also has the ability to produce modely with 4680 structured battery pack and 2170 unstructured battery pack at the same time, but at present, Mr. Wen produces models with 2170 battery pack. According to the 22q1 performance report, the capacity of models / modelx and Model3 / modely in California is 100000 and 500000 respectively; The Model3 / modely capacity of Shanghai plant is more than 450000, and the capacity of Texas and Berlin plants is climbing. The company expects that the output of 22q3 and Q4 will increase significantly, and the global total output is expected to be 1.5 million in 2022. We believe that with the production of two new factories and the decline of the impact of factory shutdown caused by the Shanghai epidemic, the production and delivery in the third and fourth quarters are expected to be replenished.
Affected by the epidemic, the production capacity of factories in Shanghai is temporarily limited, and all parties strive to ensure the stability of the supply chain. In terms of supply chain, the company is currently facing the challenges of chip shortage and covid-19 epidemic. The Shanghai factory stopped production in March due to the epidemic. The company’s management said that the Shanghai factory lost about one month’s output due to the epidemic. The good news is that Tesla was listed in the “white list” of the first batch of key enterprises on April 16, and Tesla’s Shanghai factory officially resumed production on April 19. Although the current production capacity is still limited, the company said it would pay close attention to and resume full production as soon as possible. According to the 22q1 performance press conference, the company said that it has been continuously solving the supply chain problems in the past year and striving to maintain the stability of the supply chain.
We believe that although the current supply chain faces many challenges, with the official opening of production and delivery of two super factories in Texas and Berlin, the application of new technologies and new equipment, and the company’s multiple guarantees in terms of self-produced batteries, raw material procurement and supply chain, it will help the company improve its cost control ability and operating efficiency, and its production capacity and profitability are expected to continue to improve. In the next few years, the goal of an average annual growth of 50% in delivery is expected to be achieved. In the medium and long term, the company’s revenue and gross profit will also benefit.
Investment suggestion: the company’s business performance continues to improve, the gross profit has improved significantly, and the production and delivery volume have increased steadily. At present, the demand side is strong. With the ramp up of production capacity, the sales space is expected to be further opened. The implementation of new equipment and new technology will help the company control costs and improve profitability. We’re optimistic about the high growth opportunities of the Tesla industrial chain, and we’re optimistic about the high growth opportunities of the Tesla industrial chain. We’re looking at the high growth opportunities of the Tesla industrial chain. We’re betting to focus on the high growth opportunities of the Tesla industrial chain. We’re looking at the high growth opportunities of the Tesla industrial chain. We’re looking at the high growth opportunities of the Tesla industrial chain. We’re betting to focus on the core marks of the industrial chain core that benefit from the expansion of Tesla’s production and sales expansion and the increase in localization rate, and suggestions to focus on the high growth opportunities of Tesla’s industrial chain. We’re suggesting to focus on the high growth opportunities of Tesla’s industrial chain, and focus on the high growth opportunities of the Tesla industrial chain chain chain. We’re looking at the [ China Pacific Insurance (Group) Co.Ltd(601601) Tianjin You Fa Steel Pipe Group Stock Co.Ltd(601686) 0168 Tianjin You Fa Steel Pipe Group Stock Co.Ltd(601686) 01689 Ningbo Tuopu Group Co.Ltd(601689) , Zhejiang Sanhua Intelligent Controls Co.Ltd(002050) (covered by home appliance team)].
Risk tips: the prosperity of the new energy vehicle industry has declined, the price rise of raw materials has exceeded expectations, the impact of the epidemic has exceeded expectations, the production capacity has not improved as expected, and the competition in the automotive industry has intensified.
