Tesla Earnings - What to Expect
Tesla will report its second quarter fiscal 2022earnings ending June 2022 on July 20th after the closing bell. Analysts estimates Q2 revenue to come in at $17.07 billion, compared to Q12022 revenue at $18.8 billion and Q4 2021 revenue at $17.7 billion. Earnings-per-share is expected to come in at $1.83 per share, compared to $2.86 in Q1 2022 and $2.05 in Q4 2021.Those numbers are much lower largely due to its COVID-19 shutdown of the Giga Shanghai factory between March 28 and April 18 and production ramp issues at Giga Texas and Giga Berlin which was described by Elon Musk as 'gigantic money furnaces'.
Giga Shanghai Annual Capacity
According to Reuters' unofficial sources, Teslawill suspend most production in the first two weeks of July for a planned upgrade to improved the efficiency and output of the Shanghai factory. The upgrade is expected to increase manufacturing capacity to a record level of 22,000 made in China cars per week. After the upgrade, the annual production capacity is expected to be over 1 million cars produced in Shanghai.
Investors will want to look out for updates to its installed annual capacity across all of its Giga Factories, and also for possible delivery dates for its much anticipated Cybertruck.
Tesla Q1 2022 Installed Annual Capacity Update (source: Tesla Shareholder Deck)
The China Passenger Car Association data reported that for month of June 2022, Tesla delivered 78,000 vehicles from its Shanghai plant.That compares to:
May 2022 - 32,165 cars sold
April 2022 - 10,757
March 2022 - 65,814
February 2022 - 56,515
January 2022 - 59,845
Working out the numbers from June's 78,000 cars delivered in China, it is highly possible that Shanghai's plant can reach an annual capacity of 1 million.
Those plans look optimistic, provided there are no more future lockdowns in Shanghai that could potential derail these plans. Additionally,supply chain issues could also delay Giga Berlin and Giga Texas from reaching its expected output capacity. Investors will be keen to know if Tesla's expected deliveries for 2022 of 1.5 million vehicles would still remain on target, and if Elon Musk is still bullish about demand amid recessionary fears.
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