Tesla Announces Record 2022 Results, Despite Economic Slowdown and Supply Difficulties

There are two Elon Musks: the compulsive tweeter who too often turns to conspiracy, and the captain of industry who made Tesla the world leader in electric cars. Its detractors imagined that the first would drag the second down with it. This has not happened, for the moment in any case, as evidenced by the results for the last quarter of 2022, better than expected by Wall Street, and which allow us to take stock of the year.

Tesla made 12.5 billion dollars (11.5 billion euros) in profit last year, against 5.5 billion in 2021. The manufacturer still suffered a loss of one billion in 2018, when it was close to bankruptcy and that Elon Musk was considering withdrawing him from Wall Street, a promise that has earned him the current arraignment in a California court for misrepresentation. It produced 1.369 million vehicles in 2022, a jump of 47% compared to 930,000 in 2021. It is officially targeting 1.8 million for 2023 – Mr. Musk even estimated, on Wednesday January 25 in front of analysts, that he had “the potential to produce 2 million cars” – when it was only 255,000 in 2018.

Thus, despite disruptions in global supply chains, microprocessor shortages and various shutdowns in China, Tesla experienced international revenue growth of 50% ($71 billion), there where global industry was stagnating. It garners operating margins of 16%, double the industry, according to figures provided by the company.

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Tesla may have had a stock market price divided by three since its highest, reached at the end of 2021, but it is still worth 450 billion dollars, against 200 billion for Toyota, 80 billion for Volkswagen and… 12 billion dollars for Renault.

Difficulties

This prerequisite makes it possible to put the “missed” sales targets in 2021 and 2022 into perspective, before exploring the difficulties that the company may encounter. For years, Tesla has been in a race for investment to meet demand. Elon Musk has set himself the goal of producing 20 million vehicles a year by 2030, which would make the company the world’s largest producer – Toyota currently produces 8 million cars a year.

For this, his boss estimates that he needs more than ten factories. Tesla has therefore expanded beyond the San Francisco Bay, setting up in Shanghai, near Berlin and Austin, Texas. Mr. Musk intends to expand this last factory and plans to set up in Mexico as well as in Indonesia. Rising to power is often accompanied by difficulties. After Covid-19 in the United States and political and administrative hassles in Brandenburg (Germany), its Shanghai plant suffered temporary closures due to the confinements due to the pandemic which caused it to miss its objectives for two years in a row. of production.

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