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"Tesla, Inc. (NASDAQ:TSLA) Q4 2022 Earnings Call Transcript January 25, 2023
Martin Viecha: Good afternoon everyone and welcome to Tesla's Fourth Quarter 2022 Q&A Webcast. My name is Martin Viecha, VP of Investor Relations and I'm joined today by Elon Musk, Zachary Kirkhorn and a number of other executives. Our Q4 results were announced at about 3:00 P.M. Central Time in the update deck we published at the same link as this webcast. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. During the Q&A session portion of today's call, please limit yourself to one question and one follow-up. Please use the raise hand button to join the question queue. But before we jump into Q&A, Elon has some opening remarks. Elon?
Elon Musk: Thank you, Martin. So 2022 -- just going through the 2022 recap. It was a fantastic year for Tesla. It was our best year ever on every level. Team did an amazing job. It's an honor, of course, to work with such an incredibly talented group of people. 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. Importantly, the Tesla team achieved these records while -- despite the fact that 2022 was an incredibly challenging year due to forced shutdowns, very high interest rates, and many delivery challenges. So, it's worth noting that all these records were in the face of massive difficulties.
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Summary of Transcript:
• Elon Musk and Zachary Kirkhorn were joined by other executives for the Q4 2022 Q&A Webcast
• Tesla achieved a 17% operating margin and generated $12.5B in net income and $7.5B in free cash flow
• As of January, Tesla has seen the strongest orders year-to-date in its history, almost twice the rate of production
• Autopilot Beta has been released to 400,000 customers in North America, with 100 million miles outside of highways
• 4680 cells have reached 1,000 cars a week, with an aim to get to 1,000 Gigawatt-hours of cells produced internally
• Energy storage saw record growth, with Megapack production ramping up faster than legal output
• Tesla is pushing for strong volume growth while retaining the industry's best operating margins
• Demand remains high and Tesla is continuing to execute on cost reductions
Financial Numbers and Representation:
• $12.5 billion in net income
• $7.5 billion in free cash flow
• 17% operating margin
• 400,000 customers in North America
• 100 million miles of FSD outside of highways
• 1,000 gigawatt-hours of cells produced internally
Dates and Representation:
• January 25, 2023 - Tesla's Fourth Quarter 2022 Q&A Webcast
• January - Tesla has seen the strongest orders year-to-date in its history
• March 1st - Investor Day