How much does Tesla make per car?

key takeaways

  • Elon Musk believes that Tesla could one day be a bigger company than Apple in terms of market capitalization, as he believes people will move away from gasoline cars entirely.
  • Tesla’s most recent quarter net income was $3.3 billion, a record $21.45 billion.
  • A lot of uncertainty remains about the future of electric vehicles as fears of a global recession mount.

Elon Musk and Tesla continue to be in the news for a variety of reasons. Tesla reported its third-quarter 2022 earnings, and the stock fell as the company slightly missed analysts’ expectations despite another record revenue hit. The $21.45 billion in revenue for the quarter was primarily attributable to $18.69 billion in vehicle sales.

While Tesla’s net income more than doubled to $1.62 billion in the year-ago quarter and $3.29 billion in the quarter, the company has recently faced rising raw material costs and challenges to raise production levels in Germany and Dirk. sass.

We’ll take a look at Tesla’s most recent earnings report to get a sense of the company’s financial performance.

Tesla earnings

Tesla will report third-quarter earnings on October 19, 2022. Revenue for the quarter was $21.45 billion. Net income was $3.3 billion.

Here’s how Tesla’s revenue breaks down:

  • Auto sales: $17.785 billion.
  • Auto Regulatory Credit: $286 million.
  • Car rental: $621 million.

Total vehicle revenue for the third quarter was $18.69 billion, up 55% year over year.

What is the cost of car sales revenue?

  • Auto sales expenses were $13.099 billion.
  • The cost of car rental was $381 million.

Total spending in the auto industry was $13.48 billion.

Regulatory credit no longer supports corporate profits. Those credits represent about 1.5% of total auto revenue for the quarter.

What were Tesla’s other revenue streams this quarter?

  • Energy production and storage: $1.12 billion.
  • Services and others: $1.65 billion.

In the next section, we’ll break down these different revenue streams for Tesla.

How does Tesla make money?

Tesla has multiple revenue streams, and the company is more than just an automaker. This is how Tesla makes money.

Car sales and leasing

Despite logistical bottlenecks, Tesla’s global sales have grown. Tesla delivered more than 343,000 electric vehicles in the third quarter, an all-time high and a year-over-year increase of more than 40%. Auto gross margin was 27.9%, which is still Tesla’s main source of revenue.

Sale of regulated credit

While this is listed in the automotive section, it’s a separate revenue stream that has helped the company make money in the past. To reduce carbon emissions globally, governments have provided incentives for automakers to develop electric vehicles in the form of credits. Since Tesla only makes electric cars, they get these points for free. They can then turn to sell those regulatory credits to other automakers that don’t meet the 100% profit requirement.

energy production and storage

The industry brought in $1.12 billion in the quarter. The segment focuses on selling battery backup for residential, commercial and utility use, and they also install solar roofs. Tesla reported a 62% year-over-year increase in energy storage. The company offers Powerwall home batteries and utility-scale Megapacks. As the company continues to expand into energy management, the segment includes the sale and lease of energy production and storage.

Services and others

This segment includes what customers pay to charge their cars at Tesla Superchargers, Tesla merchandise sales, and out-of-warranty vehicle repairs. The company ended the quarter with 728 stores and service points, and 4,283 booster stations.

How much does Tesla make per car?

We looked at the Auto Sales and Delivery report to get a sense of the company’s numbers. Since the company doesn’t disclose exact numbers for each vehicle, we did our own calculations.

Tesla delivered 343,830 vehicles during the quarter and produced 365,923 vehicles. With vehicle sales of $17.785 billion in the quarter, the average pre-tax price for a delivered vehicle was approximately $51,726.

Since deliveries are the closest sales numbers Tesla has given, they’re our best bet for trying to figure out how much the company earns per vehicle. We should also point out that this is just a rough figure, as the company produces more vehicles than it delivered during the quarter, and there are many other factors involved.

What’s next for Tesla?

The controversial CEO has boldly predicted that one day Tesla could be worth more than Apple. Only time will tell if this prediction will come true, but it’s worth noting that Apple is currently worth over $2 trillion based on market capitalization.

Many experts believe that Musk has recently been too optimistic between this market value announcement and the humanoid robot that hasn’t been fully delivered. However, we cannot deny that Tesla has become more than just an automaker, as the company is now known for energy storage, AI innovations and even solar panels.

Here are some of the most important factors to consider for Tesla stock in the near term:

Recession fears continue to affect everyone.

We can’t write about any stock without discussing recession fears for the global economy. As the Federal Reserve continues its most aggressive rate hike campaign in decades, there are fears that the fight against soaring inflation could tip us into a recession. While Musk believes Tesla is recession-proof, it’s hard to say how consumer spending will change when buying a car during a recession. There is a major difference between recession-resistant and recession-resistant, as consumers tend to focus on saving money during recessions.

Tesla believes the world is going electric

Musk mentioned on the earnings call that he feels the world is going electric and predicts that people will not buy gasoline cars in the future. While it’s fair to say the world is trying to get greener, there’s no conclusive evidence that people will only buy electric cars. Concerns remain about the cost of electric vehicles and the challenges of mass adoption of charging.

Tesla Semi Truck

Tesla said it hopes to produce as many as 50,000 electric trucks a year by 2024. This will increase the company’s revenue as it means another product offering. The semi-truck is another staple of the fully self-driving car that Tesla has been hyping for years.

Elon Musk’s Twitter Controversy

While Musk’s Twitter acquisition won’t directly affect Tesla, there are concerns about how much Tesla stock Musk would have to sell to make the acquisition and how distracted he would be if he were to acquire another company .

Tesla shares fall on China price cut

Tesla shares began to slide Monday morning on news that the company had cut prices in China. The stock fell as much as 7% at one point as the market reacted negatively to the news. The Chinese market faces many challenges as the country continues to enforce strict COVID-19 policies affecting retail sales. Some fear the country could also slip into recession.

The stock closed the week at $228.52, up 11.07% for the week. In hindsight, it’s hard to argue with that performance.

How should you invest?

While Tesla touts the company’s factories producing a record number of cars in the quarter, there are still logistical challenges and concerns about rising material costs. While many see electric vehicles as the transportation of the future, there is still a lot of risk involved with investing in Tesla or any other stock in this space. If you want to invest your money, you want to know what you are doing.

Another way to make money from Tesla and AI innovation is to invest in one of our AI investment toolkits. Our artificial intelligence scours the market for the best investments for various risk tolerances and economic conditions.

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