Tesla’s (NASDAQ:TSLA) third-quarter 2022 earnings name comes on the heels of the corporate’s Q3 2022 Update Letter. Tesla’s Q3 numbers had been fairly spectacular, with the corporate posting report income, working revenue, and free money circulation (FCF).

Tesla’s FCF additionally exceeded $8.9 billion within the final 12 months, and working margins reached 17.2% within the third quarter. Similar to earlier quarters, Tesla’s conflict chest grew by $2.2 billion within the third quarter, offering the corporate with money and marketable securities of $21.1 billion. 

Impressively sufficient, Tesla posted some key updates on its car initiatives within the Q3 2022 Update Letter. The Tesla Cybertruck, for instance, is already listed as a car below “Tooling” in Gigafactory Texas, whereas the Tesla Semi has been listed as a car below “Early Production” in Nevada. Tesla’s Optimus will not be but listed within the Q3 2022 Update Letter, although it received’t be stunning if the humanoid robotic will get included within the doc within the close to future. 

The following are reside updates from Tesla’s Q3 2022 Earnings Call. I can be updating this text in actual time, so please maintain refreshing the web page to view the newest updates on this story. The first entry begins on the backside of the web page.

17:28 CDT – Toni Sacchogani of Bernstein requested the place Tesla’s 4680 cells being deployed in the present day. Are they within the Semi, Model Y, and can it restrain Cybertruck? Elon famous that the Semi doesn’t use 4680 cells proper now. Tesla is making Model Ys from Giga Texas with 4680 cells, nonetheless. 

That being stated, Elon famous that Tesla doesn’t count on the 4680 cells to be a gating issue within the Cybertruck’s ramp. 

17:25 CDT – Pierre Ferragu from News Street Research requested about Tesla’s merchandise and its efforts to scale. Executives famous that Tesla is viewing its development goal in years. It takes time, however Tesla is working onerous on specifics like prices. Tesla’s 4680 cells are a superb instance of this as its timeline is all the best way to 2026. Tesla is contemplating all of the steps from prices to productions, from mine to cell.

On the 4680 ramp, “No ramp is ever easy. It’s still very challenging to get to the end,” Tesla executives stated.

17:21 CDT – Kirkhorn famous that whereas commodity will increase peaked probably the most in Q3, Tesla sees a small quantity of discount in commodity costs for manufacturing. Elon additionally famous that he expects to see reductions in 2023. 

When requested about Twitter and a possible umbrella firm, Musk famous that he’s extra of a technologist or engineer than he’s an investor. “I’m excited about the Twitter situation,” Musk stated, including that the social media firm’s worth could possibly be an order of magnitude than its present valuation in the present day. 

17:18 CDT – Canaccord Genuity analyst George Gianarikas requested about Tesla’s costs. Elon notes that issues like battery parts like lithium are growing whilst some prices reminiscent of delivery are reducing. Musk highlighted that there are various commodities with totally different value developments to contemplate. 

17:14 CDT – Colin Rusch from Oppenheimer asks about Tesla’s working bills and the place Tesla can make investments. Kirkhorn famous that Tesla’s working leverage means that the corporate can optimize its operations much more. It’s onerous to maintain it flat since Tesla is rising so quick, nevertheless it ought to normalize. “Operating leverage has improved quite a bit. It’s the lowest this quarter,” Kirkhorn stated. 

“We’re investing in everything we can think of to possibly invest in, and we’re still generating cash,” Musk stated. Tesla executives additionally famous that Optimus would positively change issues.

17:11 CDT – Colin Langan from Wells Fargo requested about any updates on FSD. Musk famous that Tesla intends to deliver FSD Beta to FSD clients by the top of the yr. The CEO reiterated that FSD ought to be capable to present clients with a usually hands-free answer for driving. Musk additionally famous that clients would in all probability must intervene or cease FSD little or no.

17:07 CDT – Analyst questions start. Adam Jonas of Morgan Stanley asks if Tesla can be going into mining. Elon explains that Tesla can, but when the corporate may discover a dependable provider, the corporate will make a deal as an alternative. “We’ll do whatever we have to… but if we have to mine, we will mine,” Musk stated. 

The CEO additionally spoke on authorities permits or necessities for mining. He highlighted that some supplies

17:05 CDT – A query about Tesla’s third platform is requested. Musk responded that whereas Tesla doesn’t speak actual dates, the first focus of the corporate’s car growth staff is that this subsequent era of cars. Musk estimates that will probably be half the price of the Model 3 and Model X, and its manufacturing will in all probability be larger than the entire firm’s present merchandise mixed. 

Think Tesla producing two cars for a similar quantity of time and effort to supply one Model 3. That can be a game-changer. 

Musk additionally famous that when he earlier stated that he believes Tesla could possibly be larger than Apple and Saudi Aramco mixed, he was not speaking about Optimus in any respect. 

17:02 CDT – A query about how Tesla can alter to a possible extended recession was requested. “To be frank, we’re very pedal to the metal, rain or shine,” Musk stated, explaining that Tesla will not be decreasing manufacturing recession or no recession. After all, electrical cars at the moment are inevitable.

“I wouldn’t say it’s recession-proof but it’s certainly recession-resilient,” Musk stated. He additionally said that Tesla sees its Energy enterprise rising quicker than the corporate’s electrical car enterprise.

“We can withstand a lot of down trends,” Kirkhorn stated.

16:57 CDT – A query concerning the progress of the 4680 battery cell manufacturing ramp was requested. Tesla executives famous that the battery ramp is definitely going effectively. The focus now’s value and additional increasing manufacturing in North America. “It’s looking good,” Musk stated. 

“Our goal is to reach 1000 GW a year in North America,” the CEO added.

16:56 CDT – A query about Germany’s vitality disaster and potential delays to Giga Berlin was requested. Kirkhorn answered that Tesla doesn’t consider that such a disaster can be affecting Giga Berlin. “We’ll see how this plays out,” Kirkhorn stated. 

A query on the Cybertruck’s pricing and closing design was additionally requested. Elon jokingly additionally requested when he may get his Cybertruck Beta unit, although Tesla executives famous that the preparations are ongoing at Giga Texas. “There are preparations here at Giga Texas for Cybertruck,” Tesla execs famous. 

Tesla Semi deliveries may additionally occur round December 1st, Elon famous. Also, to the naysayers, the Semi is not going to sacrifice any cargo-carrying capability. It can have 500 miles of vary with cargo. Tesla is aiming for 50,000 models of the Semi to be inbuilt North America.

And in fact, Elon made a hydrogen joke. “You obviously don’t need hydrogen for heavy trucking,” the CEO joked. 

16:52 CDT – A query was requested about Tesla’s 50% annualized development was requested. Musk answered that ”To one of the best of our information that Tesla will proceed to develop,” Musk stated. When requested about future merchandise, Musk flatly joked that nope, he received’t discuss them. He technically can, however he received’t.

“At Tesla, we’re always committed to continuous improvement,” Musk stated. 

16:49 CDT – A query about China’s backlog and up to date order consumption developments is requested. Elon notes that Tesla is assured of a powerful This autumn, with the corporate rising in manufacturing yearly by 50%, however not supply as a result of there aren not sufficient transportation automobiles to maneuver the cars. There’s fairly a little bit of logistics to consider, in any case. 

16:47 CDT – Shareholder questions start with a query concerning the Inflation Reduction Act. Elon notes that Tesla believes that it may well meet the necessities of the IRA, each on its automobiles and vitality merchandise. “We do expect to meet IRS requirements,” Musk stated. 

16:45 CDT – Zach Kirkhorn takes the ground, noting that Tesla’s margins had been weighed down a bit because of the prices of Giga Berlin and Texas. He additionally highlighted that each car inbuilt Giga Berlin and Texas contributes enormously to Tesla’s numbers. 

Tesla Energy additionally achieved its finest gross revenue but, pushed largely by the Megapack. With this in thoughts, and regardless of provide chain dangers, Tesla continues to be trying to obtain 50% development this yr. 

16:41 CDT – Elon famous that it’s potential for Tesla to do a buyback within the vary of about $5-$10 billion. “It is certainly possible to do a buyback in the order of $5-$10 million. It’s likely that we’ll do some meaningful buyback,” Musk stated. 

Musk, nonetheless, highlighted that it’s essential to have a look at Tesla’s long-term pattern. This is smart. Even if the corporate encounters short-term headwinds, the corporate’s long-term prospects are extraordinarily shiny. Elon famous that he believes Tesla can far exceed Apple’s present market cap. 

Musk even hinted that he sees a path the place Tesla can develop into bigger than Apple. “Now throughout the opinion we can far exceed Apple’s current market cap. I can see a path that Tesla can be worth more than Apple and Saudi Aramco combined.”

“It’s an incredibly exciting future, an unprecedented future,” Musk stated, including that credit score for Tesla’s success is because of the firm’s staff. “You guys rock. You’re the one making everything possible.”

16:38 CDT – Elon reiterates Tesla’s goal of reaching a large launch of FSD Beta by the top of the yr. “At this quarter, we expect to go to a wide-release of FSD in North America,” Musk famous, stating that FSD’s broad launch is scheduled a few month from now. He additionally highlighted that security with FSD is lots higher in comparison with when it isn’t on, in response to Tesla’s information. 

Musk additionally reiterates that Tesla has big demand, debunking considerations that the corporate is seeing a requirement downside of kinds. According to Musk, Tesla is delivering each car its makes and protecting operation margins robust.

16:36 CDT – Elon notes that the Fremont staff achieved report manufacturing in Q3, and it’ll proceed to enhance. This is fairly cool because the Fremont Factory is already some of the productive car vegetation within the United States. 

Looks like AI Day 2022 was profitable. AI day was a recruiting occasion, and it did its job. “We’ve seen a massive influx of world-class resumes,” Elon stated. 

16:35 CDT – Elon takes the ground. Q3 was one other report quarter for Tesla. He critiques the corporate’s numbers in Q3. Elon additionally famous that Tesla is trying ahead to a record-breaking This autumn. “Knock on wood, it looks like we’ll have an epic end of year,” he stated. 

Tesla is lastly rising some traction in its 4680 battery manufacturing as effectively. Structural packs, right here we go. 

16:32 CDT – Martin Viecha formally begins the Q3 2022 earnings name. Elon, Zach Kirkhorn, and different execs are current. 

16:30 CDT – Any minute now. For the previous few earnings calls, Tesla has really began on time. Let’s see if that is so in the present day as effectively. 

16:25 CDT – Last 5 minutes, everybody. Unless Elon time in fact. 

16:15 CDT – Hi everybody, and welcome to a different Tesla earnings name reside weblog! Tesla’s third-quarter outcomes had been fairly spectacular. This was regardless of Tesla lacking analyst expectations on some metrics, reminiscent of income. This has brought on Tesla inventory to really feel some stress on Wednesday’s after hours. Longtime Tesla bull Gene Munster, managing accomplice of Loup Ventures, famous that the market’s response is likely to be as a result of the truth that Tesla sometimes beats expectations. 

“Tesla is a company that typically has been beating numbers. The reaction you’re seeing is that people are a bit taken aback by the fact that they missed,” Munster stated. 

Not gonna lie. Gene Munster has some extent.

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